Each camera requires one lens

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Reference no: EM1313872

Q. Cam Co makes inexpensive 35mm cameras. Its subsidiary, InFocus, Inc., makes the lenses for the cameras. The market for such lenses is highly competitive also they can be either bought or sold at the equilibrium market price of $2. Cam Co estimates the demand for its cameras to be Qc = 12,000 - 400Pc. This implies which Pc = 30 - .0025Qc also MR = 30 - .005Qc.The marginal cost of manufacturing the cameras, not including the cost of the lenses, is constant also equal to $5. The marginal cost of the InFocus division for making the lenses is given by the equation MCl = 0.30 + 0.0004Ql. Each camera requires one lens. Explain how many cameras will Cam co produce also Illustrate what price will be charged for each?

Reference no: EM1313872

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