A Major Software Developer Has Estimated the Demand for Its

question 12

Multiple Choice

A major software developer has estimated the demand for its new personal finance software package to be Q = 1,000,000P^-2 while the total cost of the package is C = 100,000 + 25Q. If this firm wishes to maximize profit, what percentage markup should it place on this product?

• A) 90%
• B) 100%
• C) 20%
• D) 40%
• E) 250%

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Definitions:

Linear Forecast

A prediction model that assumes a straight-line (linear) relationship between the variable being forecasted and time, to project future values based on past data.

Extraversion

A personality dimension that involves the tendency to seek stimulation and enjoy the company of others, indicative of sociability and enthusiasm.

Accurate Judgment

The ability to make conclusions that closely reflect reality or are based on valid information and reasoning.

Introverted

Refers to a personality trait characterized by a focus on internal feelings rather than external sources of stimulation.