Figuring out the optimal price and quantity

Assignment Help Macroeconomics
Reference no: EM1317133

You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after the sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q = 1,000 - P, and its weekly cost of producing computers is C(Q) = 2,000 + Q2. If other firms in the industry sell PCs at $600, what price and quantity of computers should you produce to maximize your firm's profits? What long-run adjustment should you anticipate? Explain.

 

 

Reference no: EM1317133

Questions Cloud

Evidence of difference in mean life of bulbs : Is there evidence of difference in mean life of bulbs produced by the two kinds of machines. What is your conclusion?
What is the normal boiling point of mercury : Question enthalpy and entropy values are given and were asked to find boiling point of mercury
Problems of short term profitability in government : Discuss why the same types of problems may exist in government as well, where elected officials are the agents and voters are the principals.
What is the fee schedule for services : What is the fee schedule for these services, assuming that the goal is to cover only variable and direct fixed cost?  What is the fee schedule for these services, assuming that the goal is to cover only variable and direct fixed cost?
Figuring out the optimal price and quantity : You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university.
Mean time difference-sampling time : Below are the sample times in minutes. At the .05 significance level, can we conclude that there is a difference in their mean times?
Significant figures for each of the values : Find out the exact significant figures for each of the values - Indicate the number of significant figures
Type of connections in elevator shaft : Describe what type of connections would work within the elevator shaft. If more than one choice is possible, choose the best option and describe the reasons for your choice.
Creating confidence interval for true mean debt : Create a 95% confidence interval for true mean debt for student borrowers.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Determining income elasticity

From the information in the following table, calculate the income elasticity of demand for this good if income increases from $10,000 to $20,000, and if income increases from $40,000 to $50,000.

  Difference between movement along and shift of demand curve

Create a graph that shows Price on the Y-axis and Q demanded and Q Demanded and Q supplied on the X-axis.

  Price regulation in product markets

This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.

  Determine optimal bundle pricing strategy

You are the manager of a local sporting goods store. Given the reservation prices, determine your optimal bundle pricing strategy.

  National income accounting and canadian economy

In national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?

  Underlying circumstances to study economics

Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.

  Derivation of marshillian demand function

Imagine a person's utility function over two goods, X and Y, where Y represents dollars. Specifically, assume a Cobb-Douglas utility function:

  Profit-maximizing output level and produce price

Use the following data for a pure monopoly to calculate the firm's-its profit-maximizing output level and produce price;

  Federal government budget expenditures

Bush proposed for government expenditures in the case of a recessionary gap? What is the effect of his policies on the federal government budget?

  Shift in the ad curve

The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..

  Bundling pricing for three types of consumers

You are the manager of a firm that produces products X and Y at zero cost.  You know that different types of consumers value your two products differently.

  Specialization and gains from trade

Robin and Terry are Stranded on a deserted island and consume two products, coconuts and fish. In a day, Robin can catch 2 fishes or gather 8 coconuts, and Terry can catch 1 fish or gather 1 coconut.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd