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The manufacturer of a computer game planned to produce the game for a cost of $15 and sell it for $30. However, in the first
The manufacturer of a computer game planned to produce the game for a cost of $15 and sell it for $30. However, in the first month, the company sold only 100,000 games. A marketing research group suggests that by dropping their price to $20 they could probably increase sales to about 200,000 games in the next month. Production costs would stay the same, and the manufacturer has the capacity to produce 200,000 games. Which of these options is the BEST for the coming month when considering marginal costs and benefits? Question 7 options: keeping the price at $30 to retain the image of a quality product dropping the price to $20 because the overall income would increase dropping the price to $20 because more units would be sold keeping the price at $30 because the net profit would be greater
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