If Tiger Toys Faces a Demand Curve of P =

question 14

Multiple Choice

If Tiger Toys faces a demand curve of P = 85 − 0.25Q and a MC = ATC = 20,then the economic profits would be

• A)$130.
• B)$6,825.
• C)$2,600.
• D)$4,225.

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Definitions:

Hotel Rooms

Individual units within a hotel offering accommodation and various amenities to guests; often charged on a nightly basis.

Manhattan Island

An island at the mouth of the Hudson River in New York City, known for being the economic and administrative center of the city.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Equilibrium Quantity

The amount of goods or services supplied and demanded at the equilibrium price, where supply equals demand.