Using the Following Information:
Drill Quest, Inc $Q = 1,200 - 0.05 P$

question 3

Multiple Choice

Using the following information:
Drill Quest, Inc. manufactures drill bits for the oil industry. Drill Quest uses cost-plus pricing to set the price of its bits. Currently Drill Quest applies a 50 percent markup on average total cost. Average variable cost of producing bits is constant and equal to $6,000 per bit. Total fixed cost at Drill Quest is $550,000. DrillQuest currently produces 690 bits. Statistical estimation of demand for Drill Quest brand bits produces the following linear demand equation (where Q is the number of bits demanded and P is the price of bits) :
$Q = 1,200 - 0.05 P$
-Use the MR = SMC approach to finding the profit-maximizing point on the demand for Drill Quest's bits. The profit-maximizing number of bits to sell is

• A) 250
• B) 300
• C) 350
• D) 400
• E) 450

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Definitions:

Hertz

A unit of frequency in the International System of Units (SI), equal to one cycle per second.

Episodic Insomnia

A form of insomnia that occurs periodically, characterized by difficulty falling or staying asleep, and is often tied to specific stressors or events.

Primary Insomnia

A sleep disorder characterized by persistent difficulty falling asleep or staying asleep that is not caused by other health issues or substances.

Insomnia Disorder

A disorder characterized by chronic difficulty initiating or maintaining sleep or by sleep that does not restore energy and alertness.