In Problem 1, if the demand schedule for Bong's book is Q = 5,000 - 100p, the cost of having the book typeset is $6,000, and the marginal cost of printing an extra book is $4, then he would maximize his profits by
A) not having it typeset and not selling any copies.
B) having it typeset and selling 4,600 copies.
C) having it typeset and selling 2,500 copies.
D) having it typeset and selling 2,300 copies.
E) having it typeset and selling 1,150 copies.

Question

Quizplus · Accepted Answer

To maximize profits, Bong should produce the quantity where marginal cost is equal to marginal revenue. Marginal revenue can be calculated as the derivative of the demand function: MR = 5000 - 200Q. 
Setting MR = MC, we get: 5000 - 200Q = 4
Solving for Q, we get Q = 23.5 
Since Bong can only sell whole books, he should produce and sell 2,300 copies to maximize his profit. Therefore, choice D is the correct answer.

In Problem 1, If the Demand Schedule for Bong's Book