Solve the Problem $y = \frac { 101,000 } { x + 205 }$

question 210

Multiple Choice

Solve the problem.
-The U.S. Maritime Administration estimated that the cost per ton of building an oil tanker could be represented by the model $y = \frac { 101,000 } { x + 205 }$ , where $y$ is the cost in dollars per ton and $x$ is the tons (in thousands) . What size of oil tanker (in thousands of tons) can be built for $\$ 200$ per ton?

• A) 300 thousand tons
• B) 249 thousand tons
• C) 710 thousand tons
• D) 30 thousand tons

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Definitions:

Pure Monopoly

A market structure in which a single seller controls the entire supply of a product or service, and therefore can manipulate prices and conditions of sale.

Close Substitutes

Products or services that are so similar that a consumer can easily replace one with another, often affecting consumer choice and market competition.

Sole Producer

A market situation where only one supplier exists for a particular good or service, often leading to monopolistic behaviour.

Average Revenue

The amount of money received by a firm per unit of output sold.