Carlos is currently manufacturing and selling Dvd players. He has fixed costs of $800 per month. Currently he sells 20 dvd players per month for $250 each. His cost, including set-up and dealing with customers, is $150 each. Carlos is very interested in blue ray players, which have become popular. Carlos believes that he could sell 30 blue ray players per month for $290 each. His cost, including set-up, would be $250 each. However, many of his current customers don’t like blue ray players. If Carlos does sell blue ray players, he estimates that he will only sell 5 dvd players per month.
If Bill does sell Blue ray players , how much will monthly income change?
From a purely economic perspective, should Carlos sell Blue Ray players?