At a price of $3 each, SH PE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle.If the price per issue is increased to $3.25 each, only 1 million copies will be sold.Fixed costs are $1 million and unit variable costs are $0.50 per magazine.For the information provided here, what is SH PE magazine's total revenue obtained at the lower price?
A) $3,750,000
B) $3,000,000
C) $2,125,000
D) $1,625,000
E) $675,000
Correct Answer:
Verified
Q148: While consumer tastes and price and availability
Q179: FIGURE 12-6 Q180: FIGURE 12-5 Q181: Elastic demand exists when a(n) Q182: A shift in the demand curve is Q184: Products such as disposable baby diapers usually Q185: The total money received from the sale Q186: All things being equal, if a firm Q187: At a price of $3 each, Q188: Inelastic demand exists when a(n)
A)a small percentage
A)a small percentage
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents