Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. His record 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 5,000 increase in the quantity sold.PriceNumber of CDsTotal RevenueMarginal Revenue(Dollars)(Dollars)(Dollars)3010,000 2815,000 2620,000 2425,000 2230,000 2035,000 Profit is maximized at a quantity of $? CDs and a price of $ ? . This results in a profit of $ ? If you were Johnny's agent, you would advise Johnny to demand a recording fee of from the record company. $ ? Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. Hisrecord 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 5,000 increase in the quantity sold.PriceTotal RevenueMarginal Revenue(Dollars)Number of CDs(Dollars)(Dollars)3010,0002815,0002620,0002425,0002230,0002035,000Profit is meximized at a quantity ofCDs and a price ofThis results in a profit offrom the record company.If you were Johnny's agent, you would advise Johnny to demand a recording fee of

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. His record 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 5,000 increase in the quantity sold.

Price	Number of CDs	Total Revenue
(Dollars)	(Dollars)	(Dollars)
30	10,000

28	15,000

26	20,000

24	25,000

22	30,000

20	35,000

Profit is maximized at a quantity of $? CDs and a price of $ ? . This results in a profit of $ ?

If you were Johnny's agent, you would advise Johnny to demand a recording fee of from the record company. $ ?

Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. His
record 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 5,000 increase in the quantity sold.
Price
Total Revenue
Marginal Revenue
(Dollars)
Number of CDs
(Dollars)
(Dollars)
30
10,000
28
15,000
26
20,000
24
25,000
22
30,000
20
35,000
Profit is meximized at a quantity of
CDs and a price of
This results in a profit of
from the record company.
If you were Johnny's agent, you would advise Johnny to demand a recording fee of

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