Question
The editor of Runner magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity
The editor of Runner magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:
Price Quantity Demanded
$7.89 24,500
$6.95 31,600
$5.89 36,100
Monthly costs of producing and delivering the magazine include $91,500 of fixed costs and variable costs of $2.20 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)
$7.89 $
$6.95 $
$5.89 $
A price of $_________ yields the largest monthly profit.
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