The editor of Spunk magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:
| Price |
|
Quantity Demanded |
| $7.87 |
|
24,500 |
| $6.98 |
|
31,500 |
| $5.91 |
|
36,900 |
Monthly costs of producing and delivering the magazine include $93,800 of fixed costs and variable costs of $2.10 per issue.
Which price will yield the largest monthly profit?
| Price |
|
Profit |
| $7.87 |
|
$ |
| $6.98 |
|
$ |
| $5.91 |
|
$ |
A price of $ yields the largest monthly profit.