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Suppose the Doll Company American Girl Has an Inverse Demand

Question 55

Multiple Choice

Suppose the doll company American Girl has an inverse demand curve of P = 150 - 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC = 10 + 0.50Q. What is the total surplus at the profit-maximizing output level?


A) $144,000
B) $12,250
C) $18,120
D) $4,500

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