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

question 44

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 KGC's total revenue function?

• A) TR = 50Q - 0.0025Q²
• B) TR = 50Q + 0.0025Q²
• C) TR = 20,000 - 400P
• D) TR = 50 - 0.005Q

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