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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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