Use the following information for the next 2 questions.
TTV Corporation's managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5,000 and total variable costs are $4,000, based on production of 400 units. The following values may be useful:
-TTV's profit maximizing price is
A) $2.44
B) $3.37
C) $7.57
D) $13.36

Question

Use the following information for the next 2 questions.
TTV Corporation's managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5,000 and total variable costs are $4,000, based on production of 400 units. The following values may be useful: 
-TTV's profit maximizing price is
A) $2.44 
B) $3.37 
C) $7.57 
D) $13.36

Quizplus · Accepted Answer

The Answer of Use the following information for the next 2 questions.
TTV Corporation's managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5,000 and total variable costs are $4,000, based on production of 400 units. The following values may be useful: 
-TTV's profit maximizing price is
A) $2.44 
B) $3.37 
C) $7.57 
D) $13.36

Use the Following Information for the Next 2 Questions