Suppose the Doll Company American Girl Has an Inverse Demand

question 7

Multiple Choice

Suppose the doll company American Girl has an inverse demand curve of P = 150 - 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC = 10 + 0.50Q. What is the total surplus at the profit-maximizing output level?

• A) $144,000
• B) $12,250
• C) $18,120
• D) $4,500

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Definitions:

Reproductive Success

A measure of the number of offspring an individual produces and supports to reproductive age, which contributes to the genetic pool of the next generation.

Epigenetic Marks

Chemical modifications to DNA and histones that affect gene expression without altering the genetic sequence itself.

Gene Replication

The biological process by which a cell copies its DNA prior to cell division, ensuring that each new cell receives a full set of genetic information.

Gene Replication

The process by which a cell makes an exact copy of its genes during cell division.