Use the Following Information to Answer Questions $S M C = 200 - 15 Q + 0.8 Q ^ { 2 }$

question 9

Multiple Choice

Use the following information to answer Questions .
Radon Research Corporation (RRC) is one of 24 firms in Albuquerque testing homes for dangerous levels of radon gas. There is a standard test that all testing companies use. The manager of RRC wants to know the number of homes to test in 2015 in order to maximize the firm's profit. The manager forecasted a price of $160 for radon tests in 2015.
The firm's marginal cost was estimated as $S M C = 200 - 15 Q + 0.8 Q ^ { 2 }$ where Q is the number of tests performed each week. RRC's fixed cost will be $250 per week.
-How many radon tests per week should be undertaken?

• A) 12.5
• B) 15.5
• C) 16.8
• D) 17.3
• E) 20

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Definitions:

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than paying damages for breach.

Sale of Land

The process of transferring ownership of a parcel of land from one party to another through a legal sale agreement.

Impossibility

A doctrine under which a party to a contract is relieved of his or her duty to perform when that performance has become impossible because of the occurrence of an event unforeseen at the time of contracting.

Express Condition

A clearly stated, specific requirement within a contract that must be met for the contract's promises to be enforceable.