Given the Demand Function Q_X = 1500 - 100P_X

question 105

Multiple Choice

Given the demand function Q_X = 1500 - 100P_X + 75P_Y + 1.5I + .06A where P_Y = $40.00. I = $2500, and A = $5,000, what is the maximum total revenue that can be attained?

• A) $82,567.52
• B) $182,756.25
• C) $296,256.73
• D) $365,512.5
• E) none of the above

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Definitions:

Subgoals

Smaller, achievable objectives set as steps that contribute towards the attainment of a larger goal.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how much one entity represents, or is similar to, another entity.

Insight

The capacity to gain an accurate and deep understanding of someone or something.