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 KGC's profit at the profit maximizing sales price?
A) $30,000
B) $90,000
C) $120,000
D) -$30,000

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 KGC's profit at the profit maximizing sales price?
A) $30,000 
B) $90,000 
C) $120,000 
D) -$30,000

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 KGC's profit at the profit maximizing sales price?
A) $30,000 
B) $90,000 
C) $120,000 
D) -$30,000

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