Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's total revenue function?

A. TR = 50Q - 0.0025Q2

B. TR = 50Q + 0.0025Q2

C. TR = 20,000 - 400P

D. TR = 50 - 0.005Q


A. TR = 50Q - 0.0025Q2

Economics

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