Table 4.
Price in $
Quantity of
CDs
24
10,000
22
20,000
20
30,000
18
40,000
16
50,000
14
60,000
38. Refer to Table 4 above. Billie Eilish has just finished recording her latest CD. Her record company's marketing
department determines the demand for her new CD as follows. The company can produce the CD with zero
fixed costs, and a constant average variable cost of $5 per CD across the scale of production. What quantity of
CDs would maximize profit and what would that profit be?
a) $Q = 30,000$ CDs
b) $Q = 40,000$ CDs
c) $Q = 50,000$ CDs
d) $Q = 60,000$ CDs
39. Refer to Table 4 above. What would that profit be?
a) profit = $250,000
b) profit = $550,000
c) profit = $600,000
d) profit = $800,000