Question: Suppose Carrie decides to lease a photocopier and open up a black-and-white photocopying service in her dorm room for use by faculty and students. Her total cost, as a function of the number of copies she produces per month, is given in the table:
a. Fill in the missing numbers in the table, assuming that Carrie can charge 5 cents per black-and-white copy.
b. How many copies per month should Carrie sell?
c. If the lease rate on the copier were to increase by $50 per month, how would that impact Carrie's profit-maximizing level of output? How would this $50 increase in the lease rate affect Carrie's profit? What will she do when it is time to renew her lease?