Fixed explicit costs (annually):
TOTAL Explicit Fixed Costs (annual) $16,000
Fixed implicit costs (annually):
Variable cost = $20 per book.
Part 1:
Assume that the equation for demand is Q = 40,000 – 500P, where
Using the information above, fill in the attached chart (note that quantity is just the solution of the demand curve above; the first two lines of the table have been completed for you – you need to complete all other lines in the table):
Indicate the maximum profit price and quantity by highlighting those particular values with red font.
Part 2:
After you complete the chart (either fill in the empty boxes in the table above or create an Excel file), copy and paste the table into a Word file. This table should be at the top of your assignment. Then answer the following questions (based on the chart and your understanding of this material) in 600-800 words: