This Question: 1 pt 35 of 45 (44 complete) This Quiz: 45 pts possible Price and

Question

This Question: 1 pt 35 of 45 (44 complete) This Quiz: 45 pts possible Price and cost dollars per student) $150 120 98 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 dean of the college argues:"I think the course should be priced to maximize the profit the college eams, so these funds can be used to pay some other expenses." How much profit (or loss) will the college make on the course if it charges this price? O A.$2,592,000 O B.-$1,080,000 O D. $450,000

Explanation / Answer

Answer
The profit is maximum at MR=MC
where
Q=15000 and P=150
ATC=120
Profit=(P-ATC)*Q
=(150-120)*15000
=450000
option D

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