subject
Business, 12.08.2020 06:01 leopolesamoy

Lucinda has written a new novel and has chosen to self-publish. Her copyright ensures that no one can legally copy her novel. The table below shows the demand for Lucinda's novel and her costs of publishing. Demand, Costs, and Revenues for Lucinda's Book

Price (dollars) Quantity (books) Marginal Revenue (dollars) Marginal Cost (dollars) Average Total Cost (dollars)
$45 0 --- ---
40 4,000 $40.00 $5.00 $6.25
35 8, 000 30 3.75 5
30 12,000 20 5 5
25 16,000 10 10 6.25
20 20,000 0 18.75 8.75
15 24,000 -10 .00 31.25 12.5

Required:
a. How many books should Lucinda publish in order to maximize profits?
b. What price should Lucinda charge for her book in order to maximize profits?
c. How much profit will Lucinda's book generate if she produces the profit-maximizing quantity and charges the profit-maximizing price?
d. Identify the profit-maximizing price and quantity and show the amount of profit earned.

Instructions: Use the tool provided 'Profit Max' to identify the profit-maximizing price and quantity combination. Then use the shading tool provided 'Profit' to illustrate the amount of profit earned.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 23:30
Select the correct answer. joshua runs a large manufacturing business that is listed on the stock exchange. his company made good profits in the previous financial year. he now plans to reward his shareholders with handsome dividends. under which category of activities in the cash flow statement would the company’s accountants place this outflow of cash? a. investing activities b. operating activities c. financing activities d. non-operating activities
Answers: 3
question
Business, 22.06.2019 09:00
Brian has been working for a few years now and has saved a substantial amount of money. he now wants to invest 50 percent of his savings in a bank account where it will be locked for three years and gain interest. which type of bank account should brian open? a. savings account b. money market account c. checking account d. certificate of deposit
Answers: 1
question
Business, 22.06.2019 11:30
Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.
Answers: 2
question
Business, 22.06.2019 12:50
Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?
Answers: 2
You know the right answer?
Lucinda has written a new novel and has chosen to self-publish. Her copyright ensures that no one ca...
Questions
question
Mathematics, 10.03.2021 18:50
question
Mathematics, 10.03.2021 18:50
question
Mathematics, 10.03.2021 18:50
question
Mathematics, 10.03.2021 19:00
question
Mathematics, 10.03.2021 19:00
question
History, 10.03.2021 19:00
Questions on the website: 13722365