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The editor of Dynatech magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity

The editor ofDynatechmagazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:

Price Quantity Demanded

$7.91 25,000

$6.98 31,900

$5.86 36,000

Monthly costs of producing and delivering the magazine include $92,600of fixed costs and variable costs of $2.10per issue.

Which price will yield the largest monthly profit?

Price?

$7.91 $?

$6.98 $?

$5.86 $?

A Price of $? Yields the largest monthly profit.

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