Consider the following situation: the demand for the new XPhone (which can be considered to operate in a monopoly upon introduction) is given by 20,000 – 15p per day. The costs to produce this new XPhone are $300. Assume that Micrap produces everything in-house and sells the XPhones in their own Micrap stores. Determine the optimal price for this new XPhone.
p = $1,333
p = $817
p = $10,150
p = $600