A local daily newspaper has recently been acquired by a large media conglom- erate. The paper currently sells for $1.50/week and has a circulation of 80, 000 subscribers. Advertising sells for $250/page, and the paper currently sells 350 pages/week (50 pages/day). The new management is looking for ways to increase profits. It is estimated that an increase of ten cents/week in the subscription price will cause a drop in circulation of 3, 000 subscribers. Increasing the price of ad- vertising by $100/page will cause the paper to lose approximately 50 pages of advertising per week. The loss of advertising will also affect circulation, since one of the reasons people buy the paper is for the advertisements. It is estimated that a loss of 50 pages of advertisements per week will reduce circulation by 1, 000 subscriptions. Management has decided not to increase the price of advertising beyond $400/page and not to increase the price of the paper beyond $2.20/week.