BrightLight Ltd.estimates the demand curve for its table lamps to be Q = 1,000 - 4P.That is,P = 250- .25Q.Which of the following is NOT true?
A) The maximum total revenue BrightLight can obtain is $62,500.
B) The marginal revenue curve for BrightLight's table lamps is given by MR = 250 - ½P.
C) The elasticity of demand for BrightLight's table lamps is equal to 7.5 when their price is $125.
D) BrightLight maximizes its total revenues when selling 500 lamps.
Correct Answer:
Verified
Q1: In the small town of Springfield,Duffman observes
Q3: Always Round Tire finds that their demand
Q4: Price elasticity is defined as the change
Q5: Assume the demand function for SeatComfy's table
Q6: Assume that several firms compete in the
Q7: ALC,Inc.,has,in recent years,opened large markets of new
Q8: The manager of Viking Sports finds that
Q9: Assume the demand curve for skirts in
Q10: Which of the following is true of
Q11: Suppose that the current market price of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents