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:

Tax Revenue

The income generated by the government through the imposition of taxes on goods, services, income, and transactions.

Opportunity Costs

The cost of the next best alternative foregone when a decision is made to choose one option over another.

Tax

Mandatory financial charges imposed by a government on individuals and organizations to fund public expenditures.

Market Price

The current price at which a good or service can be bought or sold, determined by the balance of supply and demand in the market.