A Toilet Manufacturer Has Decided to Come Out with a New

question 156

Multiple Choice

A toilet manufacturer has decided to come out with a new and improved toilet. The fixed cost for the production of this new toilet line is $16,600 and the variable costs are $69 per toilet. The Company expects to sell the toilets for $157. Formulate a function P(x) for the total profit from the Production and sale of x toilets.

• A) \( P(x)=88 x+16600 \)
• B) \( P(x)=88 x \)
• C) \( P(x)=88 x-16600 \)
• D) \( P(x)=157 x-16600 \)

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Definitions:

Perfectly Inelastic

A situation in market demand where the quantity demanded does not change regardless of changes in the product's price.

Supply Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product that a supplier is willing to make available.

Elasticity of Supply

A metric assessing how the provision of a good changes in response to price adjustments.

Quantities Supplied

The amount of goods and services that producers are willing and able to sell at a given price over a specified period.