A Firm with Market Power Faces the Following Estimated Demand $Q _ { d } = 39,000 - 500 P + 0.4 M - 8,000 P _ { R }$

question 85

Multiple Choice

A firm with market power faces the following estimated demand and average variable cost functions: $Q _ { d } = 39,000 - 500 P + 0.4 M - 8,000 P _ { R }$ $A V C = 30 - 0.005 Q + 0.0000005 Q ^ { 2 }$ where $Q _ { d }$ is quantity demanded,P is price,M is income,and $P _ { R }$ is the price of a related good.The firm expects income to be $40,000 and $P _ { R }$ to be $2.Total fixed cost is $100,000.What is the profit-maximizing choice of output?

• A)8,000 units
• B)10,000 units
• C)12,000 units
• D)16,000 units
• E)0 units,the firm shuts down

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A continental margin that is not a plate boundary.

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The age of the oceanic crust, which increases with distance from mid-ocean ridges where new crust is formed.

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A measure indicating the age of the Earth's crust, which varies based on location, with the oceanic crust generally being younger than the continental crust.