Suppose Kate's Great Crete (KGC)has Annual Variable Costs of VC

question 4

Multiple Choice

Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q² and marginal costs of MC = 30 + 0.005Q,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is Q^d = 20,000 - 400P.What is the profit maximizing sales quantity?

• A) 20
• B) 2,000
• C) 8,000
• D) 0

---

Definitions:

Smoothing Calculation

A mathematical process used to remove short-term fluctuations and highlight longer-term trends or cycles in data sets.

Cyclical Component

A pattern in a time series data set that occurs at regular or predictable intervals, often related to economic cycles.

Periodic Fluctuations

Systematic variations within a time series data that occur at regular intervals over time.

Time Series

A sequence of data points, typically consisting of successive measurements made over a time interval.