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The editor of Bellevue magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity
The editor of Bellevue magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:
Price | Quantity Demanded | |
$7.86 | 24,400 | |
$6.95 | 31,300 | |
$5.88 | 36,700 |
Monthly costs of producing and delivering the magazine include $95,300 of fixed costs and variable costs of $2.10 per issue. Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Price Profit/(loss)
$7.86 ? $
$6.95 ?$
$5.88 ?$
A price of $_____________ yields the largest monthly profit.
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