In Problem 1, If the Demand Schedule for Bong's Book

question 28

Multiple Choice

In Problem 1, if the demand schedule for Bong's book is Q = 2,000 - 100p, the cost of having the book typeset is $9,000, and the marginal cost of printing an extra book is $4, then he would maximize his profits by

• A) having it typeset and selling 1,600 copies.
• B) not having it typeset and not selling any copies.
• C) having it typeset and selling 1,000 copies.
• D) having it typeset and selling 800 copies.
• E) having it typeset and selling 400 copies.

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Definitions:

Income

Money received, especially on a regular basis, from work, property, or investments.

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods or outcomes.

Consumption

The process of using goods and services to satisfy wants and needs.

Interest Rate

An interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan remaining.