Ralph Quarry has the only company in Laredo, Texas that makes pea gravel. He believes that pea gravel batching and delivery costs can be viewed as constant at $15 per ton sold. If he estimates the monthly demand in his market area to be given by the demand curve Q = 500 - 10P, so that MR = 50 - .2Q:
a. How many tons of pea gravel should he sell per month?
b. What price should he charge per ton and how much will his total monthly profit contribution from pea gravel sales?

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The Answer of Ralph Quarry has the only company in Laredo, Texas that makes pea gravel. He believes that pea gravel batching and delivery costs can be viewed as constant at $15 per ton sold. If he estimates the monthly demand in his market area to be given by the demand curve Q = 500 - 10P, so that MR = 50 - .2Q:
a. How many tons of pea gravel should he sell per month?
b. What price should he charge per ton and how much will his total monthly profit contribution from pea gravel sales?

Ralph Quarry Has the Only Company in Laredo, Texas That