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Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete.

Its annual inverse demand function is P= 80 - 0.5Q

where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year.

Suppose that Kalamazoo's marginal cost is: MC = 55 + 0.25Q


a. What is its profit-maximizing sales quantity and price? Round to the nearest whole number.

b. What is the value of the MC at is profit-maximizing sales quantity? Round to the nearest whole number.

c. What is the elasticity of demand for this product?

Ā 

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Yusra Anees
Yusra AneesLv10
28 Sep 2019

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