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.

---

Definitions:

Mean Household Income

The average income per household within a specified geographic location, calculated by dividing the total income of all households by the number of households.

Income Distribution

The way in which a nation’s total earnings are spread among its population, affecting economic inequality.

Policy Makers

Individuals or groups responsible for making decisions and setting policies in various sectors, including government, organizations, and institutions, affecting how societies function and resources are allocated.

Means-Tested

A method for determining whether an individual or family is eligible for government assistance based on their income and assets.