Suppose That the Price P (In Dollars) of a Product

question 60

Multiple Choice

Suppose that the price p (in dollars) of a product is given by the demand function where x represents the quantity demanded. If the daily demand is increase at a rate of 5 units per day, at what rate is the price changing when the demand is 64 units? Round your answer to two decimal places. ​

• A) The price is decreasing at approximately 0.24 dollars per day.
• B) The price is decreasing at approximately 0.04 dollars per day.
• C) The price is decreasing at approximately 0.14 dollars per day.
• D) The price is decreasing at approximately 0.03 dollars per day.
• E) The price is decreasing at approximately 0.08 dollars per day.

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Definitions:

Variable Production Costs

Costs that vary with the level of output production, including expenses like raw materials and direct labor.

Ending Inventory

The total value of all inventory a company has in stock at the end of an accounting period.

Variable Production Costs

Costs that vary in proportion to the level of production or business activity.

Variable Costing

An accounting method that only takes into account the variable production costs (direct materials, direct labor, and variable manufacturing overhead) when calculating product cost.