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A Medical Device Manufacturer Sells Its Sterilization Equipment in a Market

Question 95

Multiple Choice

A medical device manufacturer sells its sterilization equipment in a market with an inverse demand curve of P = 6,000 - 400Q, where Q measures the number of sterilizers in thousands and P is the price per unit. The marginal cost of production is constant at $4,000. The profit-maximizing quantity is ____.


A) 1,500
B) 2,000
C) 2,500
D) 4,000

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