P Is the Price Per Unit in Dollars and Q

question 31

Multiple Choice

p is the price per unit in dollars and q is the number of units. If the daily demand for a product is given by the function and the daily supply before taxation is , find the tax per item that maximizes tax revenue. Round your answer to the nearest cent. ​

• A) $714.08 per item
• B) $572.85 per item
• C) $855.30 per item
• D) $622.63 per item
• E) $504.10 per item

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Definitions:

Marginal Cost

The additional expense incurred from producing one more unit of a good or service.

Standardized

Made uniform in form or character, often to enable comparability across different contexts or systems.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogenous product, leading to no single consumer or producer having market power.

Short Run

A period in economics where at least one factor of production is fixed, and firms can't adjust all inputs.