The manufacturer of a computer game planned to produce the game for a cost of
$15 and sell it for $30. However, in the first month, the company sold only 100,000
games. A marketing research group suggests that by dropping their price to $20 they
could probably increase sales to about 200,000 games in the next month. Production
costs would stay the same, and the manufacturer has the capacity to produce
200,000 games.
Which of these options is the BEST for the coming month when considering marginal
costs and benefits?
keeping the price at $30 to retain the image of a quality product
dropping the price to $20 because the overall income would increase
dropping the price to $20 because more units would be sold
keeping the price at $30 because the net profit would be greater