Suppose That the Inverse Market Demand for a New Vaccine

question 14

Multiple Choice

Suppose that the inverse market demand for a new vaccine is P = 21,000 - 5Q, and the marginal cost is $10 per vaccine. Assuming that the manufacturer is profit-maximizing, how many units of this new vaccine will be produced?

• A) 1,200
• B) 750
• C) 10,500
• D) 1,400
• E) 1,050

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Definitions:

Gasoline Mileage

A measure of how many miles a vehicle can travel on a gallon of gasoline.

Mean Mileage

The average distance a vehicle can travel per unit of fuel.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Confidence Interval

A selection of values from statistical analyses of samples, likely to cover the value of an undiscovered population parameter.