The Demand for Professor Bongmore's New Book Is Given by the Function

question 27

Multiple Choice

The demand for Professor Bongmore's new book is given by the function Q = 6,000 - 100p. If the cost of having the book edited and typeset is $18,000, if the marginal cost of printing an extra copy is $4, and if he has no other costs, then he would maximize his profits by

• A) having it edited and typeset and selling 2,800 copies.
• B) not having it edited and typeset and not selling any copies.
• C) having it edited and typeset and selling 5,600 copies.
• D) having it edited and typeset and selling 3,000 copies.
• E) having it typeset and selling 1,400 copies.

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Definitions:

Mergers

The voluntary amalgamation of two or more corporations to form a new entity, sharing resources, liabilities, and profits.

Horizon Problem

A situation in decision-making where the choice is influenced by the limited timeframe considered for the outcome.

Share-Based Remuneration

Compensation provided to employees or other parties in the form of equity shares in the company, often used to align the interests of the employees with those of the shareholders.

Dividend Pay-Out

The portion of a company's earnings distributed to its shareholders as dividends.