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Gaston sells beer. He faces fixed costs of $18,000 per month and variable production and marketing costs of $2.50 per stein of beer. Market research
Gaston sells beer. He faces fixed costs of $18,000 per month and variable production and marketing costs of $2.50 per stein of beer. Market research has developed the following demand schedule.
Price | Qty |
14 | 5,000 |
12 | 7,000 |
10 | 8,000 |
8 | 10,000 |
Which price/volume combination should Gastonchoose?
Question 8 options:
| Price: $14; Quantity: 5,000 |
| Price: $12; Quantity: 7,000 |
| Price: $10; Quantity: 8,000 |
| Price: $8; Quantity: 10,000 |
| Unable to determine |
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