suppose that the demand curve for antimacassars is p  51  Q/900.The firm's profit-maximizing output is closest to

A) 16,875 antimacassars.
B) 5,625 antimacassars.
C) 3,712.50 antimacassars.
D) 11,250 antimacassars.
E) 2,812.50 antimacassars.

To find the profit-maximizing output, we need to use the marginal revenue (MR) and marginal cost (MC) approach.

First, let's find the MR:

MR = dTR/dQ = p(1+dQ/dS)

where dQ/dS is the inverse of the demand equation:

dQ/dS = 1/900p

Substituting this into the MR equation:

MR = p(1+1/900p) = p + 1/900

Now, let's assume the cost of producing each antimacassar (MC) is a constant $10.

To maximize profit, the firm should produce at the output where MR = MC.

MR = MC
p + 1/900 = 10
p = 899/90

Substituting this back into the demand equation:

Q = 900p/(899)
Q = 11,250

Therefore, the firm's profit-maximizing output is 11,250 antimacassars.