What is the fixed cost? fixed cost = dollars
What is the maximum profit if each item is sold for 6 dollars? (Assume you sell everything you produce. Also note that you can only produce a whole number of goods.) maximum profit = dollars
Suppose we fix production at 32 goods produced, and that they all sell when the price is 6 dollars each. Also suppose that for each 1 dollar increase in price, 2 fewer goods are sold (so if the price is 7 dollars, 30 of the 32 goods being produced are sold.)
To maximize profit in this case, we should ? decrease increase neither increase nor decrease the price by dollars. (Enter zero if the price should remain at 6 dollars.)
You can earn partial credit on this problem.