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Suppose Kate's Great Crete (KGC) is a monopolist and 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 marginal revenue function is MR = 50 - (1/200) Q and demand function is Qd = 20,000 - 400P. What is KGC's profit at the profit maximizing sales price?
A. $90,000
B. $30,000
C. $120,000
D. -$30,000
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In answering the below question, I would like the answers to come with details surrounding the equations
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