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

Question 13

Multiple Choice

Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q,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 Qd = 20,000 - 400P.What is KGC's profit at the profit maximizing sales price?


A) $30,000
B) $90,000
C) $120,000
D) -$30,000

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