Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Demand and Marginal Revenue
-(Figure: Demand and Marginal Revenue) The figure Demand and Marginal Revenue refers to a software upgrade. The producer incurred fixed costs of $10 million to produce the upgrade; the marginal cost of allowing consumers to download the upgrade is zero. To maximize profit, the producer will set a price of _____ and produce _____ upgrades.

A) $100; 125,000
B) $100; 250,000
C) $50; 125,000
D) $0; 250,000