suppose that the demand curve for antimacassars is p = 55 - Q/1,100.The firm's profit-maximizing output is closest to
A)4,900.50 antimacassars.
B)22,275 antimacassars.
C)7,425 antimacassars.
D)14,850 antimacassars.
E)3,712.50 antimacassars.

Question

Quizplus · Accepted Answer

To find the profit-maximizing output, we need to understand that this typically occurs where marginal cost (MC) equals marginal revenue (MR), derived from the demand curve. The given demand curve is $p = 55 - \frac{Q}{1,100}$. However, without explicit cost information, we can't directly calculate MR and MC. Instead, we can infer that the question might be asking for the quantity that maximizes revenue or is a significant quantity derived from the demand function. The demand curve does not directly give us the profit-maximizing output, but if we were to interpret the demand function's impact on quantity, we'd look for a significant quantity value. None of the provided options can be directly calculated from the given demand equation without additional information such as the cost function. Therefore, the correct answer is chosen based on an understanding of economic principles rather than a direct calculation from the provided demand curve equation. The choice D) 14,850 antimacassars is selected based on the assumption that it represents a significant output level in the context of the question, but without additional information (like the cost function), this remains an educated guess rather than a precise calculation.

Suppose That the Demand Curve for Antimacassars Is P =