The first edition hardcover of a new book by a popular writer has a demand which is uniformly distributed between 1 and 2 million. The production and transportation costs per hardcover are $10, and the sale price in bookstores is $25. When the paperback version comes out, the hardcover books go on sale for $5. How many hardcovers should be produced

1,750,000

Explanation:

From the question, the cost per unit for the underestimated demand is given as: $25 - $10 = $15; while for the overestimated demand is given as $5.

The probability of optimal production will be calculated as:

= 15/(15+5)

= 15/20

= 3/4

= 0.75

The optimal production will then be:

= (2,000,000 - 1,000,000) × 0.75 + 1,000,000

= (1,000,000 × 0.75) + 1,000,000

= 750,000 + 1,000,000

= 1,750,000

The number of hardcovers produced is 1,750,000

answerconversion factor;

the amount of money you earn by working is your income.

the percentage of people actively looking for a job is called unemployment.