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A company is launching a new product and is trying to identify the optimal selling price lo maximise profit. They have established that the variable
A company is launching a new product and is trying to identify the optimal selling price lo maximise profit. They
have established that the variable cost of production will be $8 per unit. Based upon market research, the selling
price which would give zero demand is $50, and if the selling price is reduced by $10 demand will increase by 500
units.
What is the optimal quantity of units to maximise profits?
Select one alternative:
O 500 units
O 1050 units
O 1450 units
O 2100 units
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