If MR = €9,000 - €300Q and MC = €5,000 + €100Q, the profit-maximizing price is:
A)€10.
B)€4,500.
C)€1,500.
D)€7,500.

Question

Quizplus · Accepted Answer

To find the profit-maximizing quantity, set MR = MC: €9,000 - €300Q = €5,000 + €100Q. Solving for Q gives Q = 10. Substitute Q = 10 back into the MR equation to find the price: MR = €9,000 - €300(10) = €6,000. However, the price is determined by the demand curve, which is not provided, but the closest option to the calculated MR is €7,500.