A Utility Company Faces Demand Given by Q = 40

question 99

Multiple Choice

A utility company faces demand given by q = 40 - 0.1p, where p is the price per unit.
If the company adopts a two-tier pricing structure, the price per unit for the lower price that maximizes revenue is $____.

• A) 266.67
• B) 233.33
• C) 166.67
• D) 133.33

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Definitions:

Median

The middle value in a data set, which divides the set into two equal halves when the values are arranged in ascending order.

IQR

The Interquartile Range, which measures the spread of the middle 50% of a data set.

Range

The difference between the highest and lowest scores in a set of data.

Median

The middle value in a dataset, dividing it into two equal parts when the data is arranged in ascending or descending order.