The demand for Professor Swinnen`s new book is given by the function Q= 2000 - 100p.

To sell the book, it must be typeset (a fixed cost). and copies must be printed.

If the cost of having the book typeset is $7000, if the marginal cost of printing an extra copy is $4, and if he has no other costs, then he would maximize his profits by,

a) having it typeset and selling 400 copies

b) having it typeset and selling 800 copies

c) having it typeset and selling 1000 copies

d) having it typeset and selling 1600 copies

e) not having it typeset (selling zero copies)

I am not sure how to incorporate fixed costs into the equation. Please show solutions for this problem, thank you.