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:

Projected Sales Growth

An estimate of the rate at which a company's sales are expected to increase over a specific period.

Pro Forma Balance Sheet

A financial statement that projects the future financial position of a company, showing assets, liabilities, and equity based on hypothetical scenarios.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a particular period.

Profit Margin

A measure of profitability calculated as net income divided by revenue, expressed as a percentage.