Scenario $10\mathrm{.}7$:

The marginal revenue of green ink pads is given as follows:

$MR=2500-5Q$

The marginal cost of green ink pads is $5$ Q $.$

Refer to Scenario $10\mathrm{.}7.$ How many ink pads will be produced to maximize revenue?

A$)0$

B$)250$

C$)300$

D$)500$

E$)$ none of the above

Answer: D

Diff: $2$

Section: $10\mathrm{.}1$

Refer to Scenario $10\mathrm{.}7.$ How many ink pads will be produced to maximize profit?

A$)50$

B$)250$

C$)500$

D$)800$

E$)$ none of the above

Answer: B

Diff: $2$

Section: $10\mathrm{.}1$

Refer to Scenario $10\mathrm{.}7.$ Suppose that the firm chooses to produce $200$ ink pads. At this level of output the demand for ink pads is

A$)$ inelastic.

B$)$ unit elastic.

C$)$ elastic.

D$)$ unit elastic.