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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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