Demand According to economic theory, the demand x for a quantity in a free market decreases as the price p increases (see the figure). Suppose that the number x of DVD players people are willing to buy per week from a retail chain at a price of $p is given by x=- 1,000 0.3p+1' 10 ≤ p ≤70. Answer parts (A), (B), and (C). Q 500- 250- x= 1,000 0.3p+1 40 Price (dollars) 80

Economic Efficiency Marginal cost is the additional cost imposed by the production of one additional item. Marginal benefit is the additional benefit of producing one additional item. For a certain company, the marginal cost C, in dollars, if it is currently producing n items, is given by C(n)=5+n, and the marginal benefit B, in dollars, is given by B(n)=250.9n. Economic efficiency occurs at the production level where marginal cost and marginal benefit are the same. What production level n gives economic efficiency for this company? Round the function values to one decimal place.