lundul asked:
Bong, a widely celebrated author has just finished writing his latest mystery novel. The demand schedule for Bong’s book is Q= 3000 - 100P. The cost of having the book typeset is $10000, and the marginal cost of printing an extra book is $4. Assuming a competitive environment, he would maximize his profits by
Bong, a widely celebrated author has just finished writing his latest mystery novel. The demand schedule for Bong’s book is Q= 3000 - 100P. The cost of having the book typeset is $10000, and the marginal cost of printing an extra book is $4. Assuming a competitive environment, he would maximize his profits by
a) having it typeset and selling 1300 copies at a profit of $9600
b) having it typeset and selling 2600 copies at a profit of $400
c) having it typeset and selling 2600 copies at a profit of $640
d) not having it typeset because he is losing money
Can you tell me how you do this question? Thank you !!!
c is wrong sorry
Daniel