| Quality Sold |
Uniform Price |
Total Revenue |
Marginal Revenue |
Variable Cost |
| 0 |
$50.00 |
$0 |
$0 |
$28 |
| 1 |
$48.00 |
$48 |
$48 |
$28 |
| 2 |
$46.00 |
$92 |
$44 |
$28 |
| 3 |
$45.00 |
$135 |
$43 |
$28 |
| 4 |
$44.00 |
$176 |
$41 |
$28 |
| 5 |
$42.00 |
$210 |
$34 |
$28 |
| 6 |
$40.00 |
$240 |
$30 |
$28 |
| 7 |
$38.31 |
$268 |
$28 |
$28 |
| 8 |
$36.50 |
$292 |
$24 |
$28 |
| 9 |
$34.50 |
$311 |
$19 |
$28 |
| 10 |
$32.70 |
$327 |
$16 |
$28 |
| 11 |
$30.91 |
$340 |
$13 |
$28 |
| 12 |
$29.17 |
$350 |
$10 |
$28 |
| 13 |
$27.46 |
$357 |
$7 |
$28 |
| 14 |
$25.79 |
$361 |
$4 |
$28 |
| 15 |
$24.07 |
$361 |
$0 |
$28 |
| 16 |
$22.50 |
$360 |
($1) |
$28 |
| 17 |
$20.94 |
$356 |
($4) |
$28 |
| 18 |
$19.39 |
$349 |
($7) |
$28 |
Question 1. What price maximizes sales of revenue?
Question 2. What price maximizes operating profit? And Why?
Question 3. Who would pursue the first objective? (price max sale revenue)
Question 4. How could Ralph Lauren's manager provides an incentive for profit maximizing behavior?