5. If Tiger Toys faces a demand curve of P = 85 0.25Q and a MC = ATC = 20, then

Question

5. If Tiger Toys faces a demand curve of P = 85 0.25Q and a MC = ATC = 20, then the output would be

A. 65.0 units.

B. 85.0 units.

C. 130.0 units.

D. 32.5 units.

6. If Tiger Toys faces a demand curve of P = 85 0.25Q and a MC = ATC = 20, then the economic profits would be

A. $130.

B. $6,825.

C. $2,600.

D. $4,225.

7. If Tiger Toys faces a demand curve of P = 85 0.25Q and a MC = ATC = 20, then the markup would be

A. $52.50.

B. $20.00.

C. $32.50.

D. $65.00.

please reply with a step by step answer, can you also include what the name of these equations are so I can do further research on the internet sinc emy book wont provide me with answers? thanks. ive been looking all over the internet for examples of demand curve output/ economic profits/ markup and nothing is showing :'(

Explanation / Answer

5 Q

P = 85 - 0.25Q
TR = 85Q - 0.25Q^2

MR = 85 - 0.5Q

20 = 85 - 0.5Q

65 = 0.5Q

130 = Q IS ANSWER

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.