A Utility Company Faces Demand Given by Q = 40

question 25

Multiple Choice

A utility company faces demand given by q = 40 - 0.1p, where p is the price per unit.
If the company charges only one price, the output that maximizes revenue is ____.

• A) 20
• B) 17
• C) 12
• D) 10

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Definitions:

Gain

An increase in wealth, income, or value, often realized from investments or sales of assets.

Election

A decision made by taxpayers regarding the treatment of certain tax items, such as choosing a filing status or opting for a standard or itemized deduction.

Indirectly

In a manner not directly caused by or resulting from something.

Related Parties

Transactions between related parties are those that occur between individuals or entities that have a close association, leading to potential conflicts of interest or non-arm's length transactions.