An Obscure Inventor in Strasburg, North Dakota, Has a Monopoly

question 10

Multiple Choice

An obscure inventor in Strasburg, North Dakota, has a monopoly on a new beverage called Bubbles, which produces an unexplained craving for Lawrence Welk music. Bubbles is produced by the following process: Q = min{ , W}, where R is pulverized Lawrence Welk records and W is gallons of North Dakota well water. P_R = P_W = $1. Demand for Bubbles is Q = 1,024P^-2A^0.5. If the advertising budget for Bubbles is $100, the profit-maximizing quantity of Bubbles is

• A) 640.
• B) 40.
• C) 0.
• D) 160.
• E) 156.