The Number of Wrenches That Can Be Produced at a Given

question 60

Multiple Choice

The number of wrenches that can be produced at a given price can be predicted by the formula $s = \sqrt { 65 x }$ , where $s$ is the supply (in thousands) and $X$ is the price (in dollars) . If the demand $d$ for the wrenches can be predicted by the formula $d = \sqrt { 324 - 4 x ^ { 2 } }$ , find the equilibrium price.

• A)$6
• B)$5
• C)$4
• D)None of the above

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Definitions:

Profit Maximizers

Refers to firms or individuals who alter their production or operational levels to achieve the highest possible profit margins.

Lump Sum Subsidy

A fixed amount of money provided by the government or a body to support a business or market, which does not change with the level of output.

Per-Unit Subsidy

A financial incentive given by the government, reducing the cost of each unit of a good or service to either the producer or consumer.

Profit Maximization

A business objective to achieve the highest possible profit from operations, often by adjusting production, prices, and other variables.