You are starting your own Internet business. You decide to form a company that will sell cookbooks o

Feb 3rd, 2012
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You must give up your full-time job, which paid $50,000 per year, and you worked part-time for half of the year. The average retail price of the cookbooks will be $30, and their average cost will be $20. Assume that the equation for demand is Q = 10,000 – 90P, where Q = the number of cookbooks sold per month

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You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business will be as follows:Technology (Web design and maintenance) $5,000Postage and handling $1,000Miscellaneous $3,000Inventory of cookbooks $2,000Equipment $4,000Overhead $1,000Answer- You must give up your full-time job, which paid $50,000 per year, and you worked part-time for half of the year. The average retail price of the cookbooks will be $30, and their average cost will be $20.Assume that the equation for demand is Q = 10,000 - 90P, where Q = the number of cookbooks sold per month P = the retail price of books.Show what the demand curve would look like if you sold the books between $25 and $35.The demand curve is given by, Q=10000-90P.When P=$25, Q =10000 - (90*25) =10000-2250 =7750 cookbooks per month.When P=$35, Q =10000 - (90*35) = 10000-3150 =6850 cookbooks per month.PQ0100002.59775595507.5932510910012.5887515865017.5842520820022.5797525775027.5752530730032.5707535685037.5662540640042.5617545595047.5572550550052.5527555505057.5482560460062.5437565415067.5392570370072.5347575325077.5302580280082.5257585235087.5212590190092.5167595145097.512251001000102.5775105550107.5325110100Part IAnswer the following questions:1- Is the business worth

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