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:

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Interest Expense

Over a span of time, the monetary burden borne by an entity due to borrowed capital.

Earning Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Total Equity

The sum of all stakes in a corporation, determined by subtracting total liabilities from total assets.