The monthly demand is now 20,000 - 5p and the variable (or marginal) cost equals 1,000, while the fixed costs equal one million (per month). Determine the optimal price and subsequent monthly sales quantity and profits.
The monthly demand is now 20,000 - 5p and the variable (or marginal) cost equals 1,000, while the fixed costs equal one million (per month). Determine the optimal price and subsequent monthly sales quantity and profits.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter12: More Realistic And Complex Pricing
Section: Chapter Questions
Problem 12.1IP
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![The monthly demand is now 20,000 - 5p and
the variable (or marginal) cost equals 1,000,
while the fixed costs equal one million (per
month). Determine the optimal price and
subsequent monthly sales quantity and
profits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad6fed59-52bb-477b-a2bf-d8637f5c170c%2F72d41f6a-d8d2-4b43-aa61-99719375189f%2Fznysqu7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The monthly demand is now 20,000 - 5p and
the variable (or marginal) cost equals 1,000,
while the fixed costs equal one million (per
month). Determine the optimal price and
subsequent monthly sales quantity and
profits.
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