A drywall company in Alberta manufactures dry-wall panels for modular construction companies. Variable costs are $20 per unit and fixed costs are $10,875. the price-demand relationship for the panels is: P = -0.25D + 250 where P is the unit sales price of the drywall panels and D is the annual demand. Knowing that Revenue = Demand X Price Profit = Revenue – Total Cost What profit would the company obtain by maximizing its total revenue if the total -0.25x^2+$250x? Select one: O a. $550 O b. $650 C. None d. $500

A drywall company in Alberta manufactures dry-wall panels for modular construction companies. Variable costs are $20 per unit and fixed costs are $10,875. the price-demand relationship for the panels is: P = -0.25D + 250 where P is the unit sales price of the drywall panels and D is the annual demand. Knowing that Revenue = Demand X Price Profit = Revenue – Total Cost What profit would the company obtain by maximizing its total revenue if the total -0.25x^2+$250x? Select one: O a. $550 O b. $650 C. None d. $500

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 5E

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