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A Cellphone Maker Sells 6,000 Units Per Month at $600

Question 217

Multiple Choice

A cellphone maker sells 6,000 units per month at $600 each.The firm is investigating whether a price cut to $500 is warranted.The firm's marginal cost of production of each phone is a constant $400 per unit.To maintain profits at their current level, quantity sold must increase to at least


A) 8,000
B) 10,000
C) 12,000
D) 15,000

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