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

question 37

Multiple Choice

Suppose Kate's Great Crete (KGC) has annual variable costs of and marginal costs of ,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 What is KGC's profit at the profit maximizing sales price?

• A) $30,000
• B) $90,000
• C) $120,000
• D) -$30,000

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Definitions:

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution of a problem.

Creativity

The ability to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining.

Physical Exercise

Activities that require physical effort undertaken to sustain or improve health and fitness.

Endorphins

naturally occurring chemicals in the body that interact with the brain's receptors to reduce pain perception and boost feelings of pleasure or euphoria.