Question
The monopolist Mr. Pop It Right is considering whether it is worthwhile producing an additional 25 units per day of his large bags of popcorn.
The monopolist Mr. Pop It Right is considering whether it is worthwhile producing an additional 25 units per day of his large bags of popcorn. Doing so would cost him an additional $45 in total. He is currently selling 50 bags per day at $4.25 each. In order to sell the additional 25 bags every day, however, he would have to lower his price to $3.50. What do you recommend?Round your answers to one decimal place.
Previous total revenue:_________
New total revenue:______________
His additional revenue, therefore is_________, which is_________ (greater then / less than / OVER 9000)the additional cost of $45, so he_______ (should produce / should not produce) the additional bags.
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