Given the Demand Function Q_X = 5,000 - 250P_X +120P_Y

question 22

Multiple Choice

Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where
P_Y = $50.00 and I = $60,000, what is the maximum total revenue that can be attained?

• A) $79,650
• B) $156,567
• C) $179,560
• D) $227,657
• E) none of the above

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of goods or services produced, such as rent, salaries, and insurance.

Cakes

Commonly a sweet baked dessert, typically made from ingredients like flour, sugar, eggs, and butter or oil.

Wheat

A cereal grain that is a worldwide staple food, used for making products like bread, pasta, and pastry due to its gluten content.

Acre

A unit of land measurement used in the Imperial and US customary systems, equal to 43,560 square feet or about 4047 square meters.