The marginal cost of Alexa's Guide to Street People and Their Pets is constant at $5.Alexa sells 5,000 copies per year at $20 per copy.She would like to increase readership and hold total profit constant.If the price goes to $15, how many copies must she sell?
A)10,000
B)9,000
C)7,500
D)6,000

Question

Quizplus · Accepted Answer

To maintain the same total profit, the decrease in price must be offset by an increase in quantity sold. Initially, profit per copy is $15 ($20 - $5), and total profit is $75,000 (5,000 copies * $15). At $15 per copy, profit per copy is $10 ($15 - $5). To maintain $75,000 profit, she must sell 7,500 copies ($75,000 / $10).

The Marginal Cost of Alexa's Guide to Street People and Their