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

question 59

Multiple Choice

The demand for Professor Bongmore's new book is given by the function Q = 5,000 - 100p.If the cost of having the book typeset is $9,000, 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)not having it typeset and not selling any copies.
• B)having it typeset and selling 2,500 copies.
• C)having it typeset and selling 4,600 copies.
• D)having it typeset and selling 2,300 copies.
• E)having it typeset and selling 1,150 copies.

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Definitions:

Canadian Dollar

The official currency of Canada, symbolized as CAD and often referred to as the "loonie."

Exchange Rates

The rate at which one currency can be exchanged for another, playing a critical role in international trade and finance.

Inventory Value

The cost or market value of all the goods and materials held by a company for the purpose of resale.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess relative currency value.