Elucidate how many papers should be sold

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Reference no: EM1315457

Q. The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with The Wall Street Journal, USA Today also the New York Times for national news reporting, but the Star offers readers stories of local interest, such as local news, weather, and high- school sporting events also so on. The El Dorado Star faces the demand also cost schedules Elucidate how in the spreadsheet which follows:

Number of Total Revenue Total cost
newspapers per day per day per day
(Q) $(TR) $(TC)
0 0 2,000
1,000 1,500 2,100
2,000 2,500 2,200
3,000 3,000 2,360
4,000 3,250 2,520
5,000 3,450 2,700
6,000 3,625 2,890
7,000 3,725 3,090
8,000 3,625 3,310
9,000 3,475 3,550

a. Elucidate how many papers should be sold daily to maximize profit?

b. Illustrate what is the maximum profit the El Dorado Star can earn?

c. Illustrate what is the total fixed cost for the El Dorado Star? If the total fixed cost increases to $5,000, Elucidate how many papers should be sold daily for profit maximization?

Reference no: EM1315457

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