PNG's Managers Estimate That a 50% Increase in Price Would

question 72

Multiple Choice

PNG's managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5,000 and total variable costs are $4,000, based on production of 400 units. The following values may be useful: PNG's profit maximising price is:

• A) $3.37
• B) $7.57
• C) $2.44
• D) $13.36

---

Definitions:

Temporary Advantage

An advantage or benefit that an organization holds for a short period of time, often due to a unique product, service, or situation.

Knowledge Dissemination

The process of spreading information and insights across different stakeholders, including individuals, organizations, and communities, to enhance understanding and application.