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Sagot :
Answer:
100 units , $15 , $1000
Explanation:
Marginal cost = $5
Number of subscriptions = 100 $15 a week
Number of subscriptions = 175 $10 a week
Determine the number of units to be sold between 100 and 175 units
when he sells 100 units
Revenue = price * quantity = 15 * 100 = $1500
missed opportunity = MC * Q = 5 * 100 = $500
profit made = Revenue - missed = $1500 - $500 = $1000
When he sells 175 units
Revenue = price * quantity = 10 * 175 = $1750
missed opportunity = MC * Q = 5 * 175 = $875
profit made = Revenue - missed = $1750 - $875 = $875
Therefore to earn maximum profit ;
sell 100 units at $15 and make an economic profit = $1000
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