Suppose Kate's Great Crete (KGC) has annual variable costs of and marginal costs of , where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is . What is the profit maximizing sales quantity?
A) 20
B) 2,000
C) 8,000
D) 0

Question

Suppose Kate's Great Crete (KGC) has annual variable costs of  and marginal costs of  , where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is  . What is the profit maximizing sales quantity?
A) 20 
B) 2,000 
C) 8,000 
D) 0

Quizplus · Accepted Answer

The Answer of Suppose Kate's Great Crete (KGC) has annual variable costs of  and marginal costs of  , where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is  . What is the profit maximizing sales quantity?
A) 20 
B) 2,000 
C) 8,000 
D) 0

Suppose Kate's Great Crete (KGC) Has Annual Variable Costs of