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costs per year (i.e., per printing) = $51,000 and the variable cost per unit = $35. What is th It can be achieved? What is the unit price at this point of optimal demand? Demand is no 000 units per year. it that can be achieved is $144,313. (Round to the nearest dollar.) e point of optimal demand is $ per unit. (Round to the nearest cent.)

costs per year (i.e., per printing) = $51,000 and the variable cost per unit = $35. What is th It can be achieved? What is the unit price at this point of optimal demand? Demand is no 000 units per year. it that can be achieved is $144,313. (Round to the nearest dollar.) e point of optimal demand is $ per unit. (Round to the nearest cent.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 6E
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A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.02 × Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing) = $51,000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $144,313. (Round to the nearest dollar.) The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.)
Transcribed Image Text:A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.02 × Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing) = $51,000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $144,313. (Round to the nearest dollar.) The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.)
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