show ans and step! the ans is E. I need the step! 8. The demand for Professor Sw
ID: 1218436 • Letter: S
Question
show ans and step!
the ans is E. I need the step!
8. The demand for Professor Swinnen. S new book is given by the function 2 2,000 100p o sell the book, it must be typeset a fixed cost, and copies must be printed If the cost of having the book typeset is $7,000, if the marginal cost of printing an extra copy is $4, and if he has no other costs, then he would maximize his profits by a. having it typeset and selling 400 copies b. having it typeset and selling 800 copies c. having it typeset and selling 1,000 copies d. having it typeset and selling 1,600 copies e. not having it typeset (selling zero copies)Explanation / Answer
IF you produce…
You will set MR = MC, so PD = 20-(1/100)X which implies that MR = 20-(2/100)X. Note that MC = 4.
So set 20-(2/100)XSM = 4 and get XSM = 800 and PSM = $12 so profit is $9600-$3200-$7000 = -$600.
So Produce nothing you are better off not sinking the money into the typesetting
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.