Table 3 Types Hardcover Price Paperback $9.99 Q $27.95 0.5 millions $1.50 AC 1 millions Option 1: profit-$12.74 Option 2: profit-$22.74 O Option 3: profit- $23.74 Option 3: profit- $21.72 O Option 2 profit -$12.735 O Option 1 profit-$13.225 $1.50 Given the information, the publisher has the following three pricing options: Option 1: Only sell the hardcover at $27.95 Option 2: Only sell the paperback at $9.99 Option 3: Sell hardcover at a price of $27.95 and paperback at a price of $9.99. Given the options, estimated quantities sold at each price and average cost, which price option would generate the most profit and how much is the profit?
Table 3 Types Hardcover Price Paperback $9.99 Q $27.95 0.5 millions $1.50 AC 1 millions Option 1: profit-$12.74 Option 2: profit-$22.74 O Option 3: profit- $23.74 Option 3: profit- $21.72 O Option 2 profit -$12.735 O Option 1 profit-$13.225 $1.50 Given the information, the publisher has the following three pricing options: Option 1: Only sell the hardcover at $27.95 Option 2: Only sell the paperback at $9.99 Option 3: Sell hardcover at a price of $27.95 and paperback at a price of $9.99. Given the options, estimated quantities sold at each price and average cost, which price option would generate the most profit and how much is the profit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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