Asked by
Pablo Machado
on Oct 14, 2024Verified
if the demand schedule for Bong's book is Q 5,000 100p, the cost of having the book typeset is $6,000, and the marginal cost of printing an extra book is $4, then he would maximize his profits by
A) not having it typeset and not selling any copies.
B) having it typeset and selling 4,600 copies.
C) having it typeset and selling 2,500 copies.
D) having it typeset and selling 2,300 copies.
E) having it typeset and selling 1,150 copies.
Demand Schedule
A table or graph that shows the quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.
Marginal Cost
The cost of producing one additional unit of a product, highlighting the concept of increasing or decreasing costs with production scale.
Typeset
The arrangement and composition of text material by means of types, including digital forms for printing or display.
- Evaluate the highest profit margins across different production and cost scenarios.
- Determine the peak production capacity to elevate profit margins or comply with given economic criteria.
Verified Answer
MA
Learning Objectives
- Evaluate the highest profit margins across different production and cost scenarios.
- Determine the peak production capacity to elevate profit margins or comply with given economic criteria.