P Is the Price Per Unit in Dollars and Q

question 40

Multiple Choice

p is the price per unit in dollars and q is the number of units. If the demand and supply functions for a product are and , respectively, find the tax per unit t that will maximize the tax revenue T. Round your answer to the nearest cent.

• A) $406.10 per item
• B) $393.90 per item
• C) $407.50 per item
• D) $387.19 per item
• E) $400.00 per item

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Definitions:

Capital Budgeting

The process used by companies to evaluate and select long-term investments that are likely to help achieve their financial goals.

Investment

Designating financial means with the prospect of attaining profit or income.

Capital Intensity Ratio

A financial metric that compares a company's total assets to its sales revenue, used to evaluate how much capital is needed to generate sales.

Total Assets

The sum of all assets owned by a company, including current, fixed, and intangible assets, as reported on the balance sheet.