9. Problems and Applications Q3 Johnny Rockabilly has just finished recording his latest CD. His record company can produce the CD with no fixed cost and a variable cost of $5 per CD. The company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 10,000 increase in the quantity sold. Total Revenue Marginal Revenue (Dollars) (Dollars) Price (Dollars) Number of CDs 24 10,000 22 20,000 20 30,000 18 40,000 16 50,000 14 60,000 AAAAA Profit is maximized at a quantity of 40,000 CDs and a price of $18. This results in a profit of If you were Johnny's agent, you would advise Johnny to demand a recording fee of $700,000. from the record company.

9. Problems and Applications Q3 Johnny Rockabilly has just finished recording his latest CD. His record company can produce the CD with no fixed cost and a variable cost of $5 per CD. The company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 10,000 increase in the quantity sold. Total Revenue Marginal Revenue (Dollars) (Dollars) Price (Dollars) Number of CDs 24 10,000 22 20,000 20 30,000 18 40,000 16 50,000 14 60,000 AAAAA Profit is maximized at a quantity of 40,000 CDs and a price of $18. This results in a profit of If you were Johnny's agent, you would advise Johnny to demand a recording fee of $700,000. from the record company.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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