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

question 36

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 marginal revenue equation?

• A) MR = 20 - .004Q_X²
• B) MR = 20 +.008Q_X
• C) MR = 53.6 - .004Q_X²
• D) MR = 53.6 - .008Q_X
• E) MR = 53.6 + .008Q_X²

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Definitions:

Fine

A monetary penalty imposed by an authority on individuals or entities as punishment for violating laws or regulations.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, usually upward-sloping.

Variable Costs

Costs that vary directly with the level of production output, such as raw materials and hourly labor expenses.

Output

The quantity of output generated by an individual, device, or sector.