The Inverse Demand Function for Coffee Is P = 50,000

question 26

Multiple Choice

The inverse demand function for coffee is p = 50,000 - 2q, where q is the number of tons produced and p is the price per ton. Total revenue from coffee sales be maximized when the output level is

• A) 25,000 tons.
• B) 15,000 tons.
• C) 17,500 tons.
• D) 12,500 tons.
• E) none of the above.

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