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

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

Price

Quantity Demanded

$7.91

24,900

$6.95

31,900

$5.89

36,100

Monthly costs of producing and delivering the magazine include $91,900 of fixed costs and variable costs of $2.20 per issue.

Which price will yield the largest monthly profit?

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