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

question 35

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 price?

• A) $47.70
• B) $30.00
• C) $45.00
• D) $50.00

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Terms or phrases that have completely different or contradictory definitions in comparison to each other.

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A scale of measurement in which the numerical differences between values are meaningful, and there is no true zero point.

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A measure indicating that two or more points are at the same spatial or conceptual distance from each other.

Number

A mathematical object used to count, measure, and label.