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:

Physical Problems

Physical problems refer to any type of health issue or condition that affects the body's ability to function normally.

Problem Solving Techniques

Methods or approaches used to address problems and find effective solutions.

Solution

A homogeneous mixture of two or more substances in which the solute is completely dissolved in the solvent.

Communist Economic System

An economic model where all means of production are owned by the community as a whole, aiming for a classless society where goods are distributed based on need.