# What price should be charged in order to maximize profits?

Nov 27th, 2015
HelloWorld
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Price: \$5 USD

Question description

Bob's Company sells one product with a variable cost of \$5 per unit. The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand. If fixed costs are \$100,000 and the following chart represents the demand at various prices, what price should be charged in order to maximize profits?

Units Sold     Price

30,000                \$10

40,000                  \$9

50,000                 \$8

60,000                 \$7

Question 26 options:

A. \$10

B. \$9

C, \$8

D. \$7

(Top Tutor) Daniel C.
(997)
School: UT Austin

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FratBro23
Nov 27th, 2015
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