Suppose That the Demand Curve for Antimacassars Is P =

question 3

Multiple Choice

suppose that the demand curve for antimacassars is p = 53 - Q/1,000.The firm's profit-maximizing output is closest to

• A)6,500 antimacassars.
• B)13,000 antimacassars.
• C)19,500 antimacassars.
• D)4,290 antimacassars.
• E)3,250 antimacassars.

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

Price Elasticity

A measure indicating the extent to which the demand for a merchandise changes following a price adjustment.

Short Run

A period in economics during which at least one input is fixed and cannot be changed by the firm.

Long Run

A period in which all factors of production and costs are variable and companies can enter or exit an industry.