Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is Q = 20,000 - 400P,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What price does KGC charge per unit when it sells 5,000 cubic years of concrete per year?

Question

Quizplus · Accepted Answer

To find the price that KGC charges per unit when it sells 5,000 cubic yards of concrete per year, we need to use the demand equation and substitute the value of Q (i.e. 5,000) in it, and then solve for P.

Q = 20,000 - 400P

5,000 = 20,000 - 400P

400P = 20,000 - 5,000

400P = 15,000

P = 15,000/400

P = 37.5

Therefore, KGC charges $37.50 per unit when it sells 5,000 cubic yards of concrete per year.

Hence, the correct choice is C).

Kate's Great Crete (KGC)is a Local Monopolist of Ready-Mix Concrete