Figure 10-17
Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure.
-Refer to Figure 10-17.The dean of the college argues: "I think the course should be priced to maximize the profit the college earns,so these funds can be used to pay some other expenses." How much profit (or loss)will the college make on the course if it charges this price?

Question

Figure 10-17
  Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure.
-Refer to Figure 10-17.The dean of the college argues: "I think the course should be priced to maximize the profit the college earns,so these funds can be used to pay some other expenses." How much profit (or loss)will the college make on the course if it charges this price?

Quizplus · Accepted Answer

The college will make a profit of $450,000 if it charges the price that maximizes profit, as indicated in the options provided.

Figure 10-17 Your College Decides to Offer a Psychology Course