The question is the picture sert Format Tools Extensions Help% ▼ Normal text ▼Arial- 1 2 |-Last edit was seconds ago11 + B I U A803.45000000market research. It appears from this study that by selling these effigies for $3.75 we canhope to sell 1,000, whereas setting the price at $2.50 potential sales areof 3,000.CA college wishes to produce an effigy for the student carnival. The studiesprerequisites have made it possible to establish that the production of these effigies requiresfixed costsof $2,008 and variable costs (materials, labour, energy) of $0.90 pereffigy. One of the requirements of the college being not to make a deficit, it had aa) Express the demand in terms of the selling price and representgraphically this function.b) Express the cost of production in terms of the selling price.c) Express the income in terms of the selling price and determine the price that thecollege should set to maximize income from this sale of effigies.d) Represent on the same system of axes the income function and the cost functionand determine the prices corresponding to the break-even points and numbereffigies which will then be sold.e) Express the profit as a function of the selling price and represent graphicallythis function.f) Determine the price the college should set to maximize the profit from thissale.A6

Given information Fixed cost of producing effigy=$2008 Variable cost=$0.90 per effigy When Selling…

A college wishes to produce an effigy for the student carnival. The studies prerequisites have made it possible to establish that the production of these effigies requires fixed costsof $2,008 and variable costs (materials, labour, energy) of $0.90 per effigy. One of the requirements of the college being not to make a deficit, it had a market research. It appears from this study that by selling these effigies for $3.75 we can hope to sell 1,000, whereas setting the price at $2.50 potential sales are of 3,000.

A college wishes to produce an effigy for the student carnival. The studies prerequisites have made it possible to establish that the production of these effigies requires fixed costsof $2,008 and variable costs (materials, labour, energy) of $0.90 per effigy. One of the requirements of the college being not to make a deficit, it had a market research. It appears from this study that by selling these effigies for $3.75 we can hope to sell 1,000, whereas setting the price at $2.50 potential sales are of 3,000.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.7P

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