Suppose a Firm Faces the Demand Function Q = 800

question 24

Multiple Choice

Suppose a firm faces the demand function q = 800 - 4P. The firm's total production costs are given by MC(q) = 9.5q + q². If the firm cannot price discriminate, the deadweight loss is $____.

• A) 2
• B) 1.97
• C) 1.85
• D) 1.45

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Definitions:

Canada Manu.

Reference to manufacturing activities or industries located in Canada, often involving the production of goods using Canadian resources.

EOQ

Economic Order Quantity (EOQ) is an inventory management formula that determines the ideal order size that minimizes the total costs of holding and ordering inventory.

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs related to ordering and receiving goods.

Inventory Value

The reported value of a company's goods or materials that have not yet been sold, calculated based on the cost of acquisition or manufacturing.