American Girl doll has an inverse demand curve of P- 150 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC 10+0.50Q. What is the total surplus at the profit -maximizing output level? 1)$12,250 Correct 2) $144,000 3)$18,120 4)$4,500
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American Girl doll has an inverse demand curve of P- 150 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC 10+0.50Q. What is the total surplus at the profit -maximizing output level?
1)$12,250
Correct
2) $144,000
3)$18,120
4)$4,500
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