Gotcha, the Only Seller of Stun Guns, Faces the Inverse

question 124

Multiple Choice

Gotcha, the only seller of stun guns, faces the inverse market demand curve P = 400 - 12Q, where Q measures the number of stun guns per day and P is the price per stun gun. The marginal cost is constant at $64. Gotcha's profit-maximizing price is $____.

• A) 400
• B) 324
• C) 232
• D) 212

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Definitions:

Median

The middle value in a data set when the values are arranged in ascending or descending order, or the average of the two middle numbers if the data set has an even number of observations.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data points.

Range

The difference between the highest and lowest values in a set of data, indicating the spread or dispersion of the values.

Median

The middle value in a set of numbers, which separates the higher half from the lower half of the dataset.