Options:$16.50800,000<Q<900,000$13.50$17.50900,000<Q<1,000,000700,000<Q<800,0001,100,000<Q1,200,0001,000,000<1,100,000$14.50$15.50 When Taylor Swift released her second re-recordedalbum, Red (Taylor's Version), assume her recordcompany's marketing department determined the demandto be the following:Price$2019181716151413121110Quantity500,000600,000700,000800,000900,0001,000,0001,100,0001,200,0001,300,0001,400,0001,500,000The company can produce the album with no fixed costand a variable cost of $6 per album.What is the approximateprice?Between what quantitiesof albums maximizesprofit?Choose...Choose...4

Optimal price in the above case would be the one providing highest profits for the organisers of the…

Answered: hen Taylor Swift released her second…

hen Taylor Swift released her second re-recorded album, Red (Taylor's Version), assume her record company's marketing department determined the demand to be the following: Dei

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6.1IP

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Question

Options:

$16.50

800,000<Q<900,000

$13.50

$17.50

900,000<Q<1,000,000

700,000<Q<800,000

1,100,000<Q1,200,000

1,000,000<1,100,000

$14.50

$15.50

When Taylor Swift released her second re-recorded
album, Red (Taylor's Version), assume her record
company's marketing department determined the demand
to be the following:
Price
$20
19
18
17
16
15
14
13
12
11
10
Quantity
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
The company can produce the album with no fixed cost
and a variable cost of $6 per album.
What is the approximate
price?
Between what quantities
of albums maximizes
profit?
Choose...
Choose...
4

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