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 elasticity of demand for BrightLight's table lamps is equal to 7.5 when their price is $125.
B. The maximum total revenue BrightLight can obtain is $62,500.
C. The marginal revenue curve for BrightLight's table lamps is given by MR = 250 - ½P.
D. BrightLight maximizes its total revenues when selling 500 lamps.
Answer: A
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