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The editor of Paver magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:
Price Quantity Demanded
$7.91 24,900
$6.95 31,900
$5.89 36,100
Question 1: Monthly costs of producing and delivering the magazine include $91,900 of fixed costs and variable costs of $2.20 per issue. Which price will yield the largest monthly profit?
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