eh Price and cost (dollars per student) $150 120 04 72 ATC 40 MC MR 15,000 24,00

Question

eh Price and cost (dollars per student) $150 120 04 72 ATC 40 MC MR 15,000 24,000 30,000 36,000 Quantity of studonts enrolled Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The facuity member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll.' Which price should this facuity member favor? OA. $0 B. $40 O C. $88 O D. $150

Explanation / Answer

Answer
Option B
The debate on to price or not, the best to price
The faculty will favor a price where demand is highest
at P=40 the demand is 30000 unit and P=0 demand is 36000 units
bu the faculty assume that the more students enroll if the price is not zero.
so the ultimate everyone will set at MC=P

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