Johnny Rockabilly has just finished recording his latest CD.?

Johnny Rockabilly has just finished recording his latest CD.? His record company’s marketing department determines that the demand for the CD is as follows: Price____________________Number of CDs $24_____________________10,000 $22_____________________20,000 $20_____________________30,000 $18_____________________40,000 $16_____________________50,000 $14_____________________60,000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a) Find the total revenue for quanitity equal to 10,000, 20,000, and so on. What is the marginal revenue for each 10,000 increase in the quanitity sold? b) What quanitity of CDs would maximize profit? What would the price be? What would the profit be? c) If you were Johnny’s agent, what recording fee would you advise Johnny to demand from the record company? Why?

Join the Conversation


  1. 893457 246938Hello! Ive been following your weblog for a although now and finally got the courage to go ahead and give you a shout out from Kingwood Texas! Just wanted to mention keep up the good work! 375260

  2. 867367 640863Hello, you used to write fantastic, but the last few posts have been kinda boringK I miss your great writings. Past few posts are just a little out of track! come on! 706990

  3. 841509 693683Wow! This could be one certain of the most beneficial blogs Weve ever arrive across on this topic. Truly Wonderful. Im also an expert in this subject therefore I can realize your hard function. 729098

Leave a comment

Your email address will not be published.