A Cellphone Maker Sells 6,000 Units Per Month at $600

question 217

Multiple Choice

A cellphone maker sells 6,000 units per month at $600 each.The firm is investigating whether a price cut to $500 is warranted.The firm's marginal cost of production of each phone is a constant $400 per unit.To maintain profits at their current level, quantity sold must increase to at least

• A)8,000
• B)10,000
• C)12,000
• D)15,000

---

Definitions:

Environments

Diverse settings or contexts in which individuals, organizations, and species exist and interact.

Smartphones

Portable electronic devices with advanced computing capabilities, allowing for voice and video communication, internet browsing, and running various applications.

U.S. Adults

Individuals within the United States who are legally considered adults, usually aged 18 and older.

Media Users

Individuals who engage with a variety of media platforms for information, entertainment, or communication purposes.