Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is ,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?
A) $12.5
B) $25
C) $37.5
D) $50

Question

Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is  ,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?
A) $12.5 
B) $25 
C) $37.5 
D) $50

Quizplus · Accepted Answer

To find the price at which KGC charges when it sells 5,000 cubic yards of concrete per year, we need to substitute Q=5000 in the demand function and solve for P:
P = 75 - Q/1000
P = 75 - 5
P = 70

Therefore, KGC charges $70 per cubic yard of concrete when it sells 5,000 cubic yards of concrete per year. However, this is not one of the answer choices. To find the closest answer choice, we can round $70 to the nearest multiple of 12.5 (the increment between answer choices), which is $37.5. Hence, the best choice is C) $37.5.

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