Question
The editor of Foress magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity
The editor ofForessmagazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:
Price
Quantity Demanded
$7.8624,400$6.96
31,100$5.86
36,200
Monthly costs of producing and delivering the magazine include $90,400 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)$7.86$
$6.96
$
$5.86
$
A price of $
yields the largest monthly profit.
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