Answer:
Step-by-step explanation:
To determine if increasing the price to $6 per customer will lead to higher net profits next year, Ikram needs to consider both the demand for his product and the costs associated with producing it.If demand for his product is inelastic (meaning customers are willing to pay a higher price for it regardless of the price increase), then increasing the price to $6 per customer may lead to higher net profits. However, if demand is elastic (meaning customers are more price-sensitive and may switch to a competitor if prices increase), then increasing the price could actually result in lower net profits.Ikram also needs to consider his costs. If the cost of producing the product remains the same or decreases, then the increase in price could lead to higher net profits. However, if the cost of production increases, then the increase in price may not offset the increase in costs and could result in lower net profits.Therefore, without knowing the specifics of Ikram's product, its demand, and its costs, it is difficult to say whether increasing the price to $6 per customer will lead to higher net profits. Ikram should conduct a cost-benefit analysis to determine the optimal price that will maximize his net profits.