What long-run adjustments should be anticipated

Assignment Help Business Economics
Reference no: EM132170614

MichiganSux Computers is a manufacturer of customized computers that meet the specifications required by a local university. Over 90 percent of their clientele consists of college students. MichiganSux 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, MichiganSux 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 MichiganSux is given by Q = 1000 - P, and its weekly cost of producing computers is TC = 2,000 + Q2. If other firms in the industry sell PCs at $600, what price and quantity of computers should MichiganSux produce to maximize profits? What long-run adjustments should be anticipated? Explain?

Reference no: EM132170614

Questions Cloud

Determine the time required to produce the given item : Determine the time required to produce the 2000th item if the first item requires 180 minutes to produce and the learning-curve percentage is 92%.
Evaluate the impact competitors market structures : Evaluate the impact competitors market structures and economic factors have on the results of the generic drug pricing strategies.
Calculate price elasticity of demand and interpret result : Calculate price elasticity of demand and interpret your result. You must show your work.
Calculate the coefficients and draw a pearl curve : Calculate and draw growth curves over 10 years. Let L = 1000 and the numbers for years 1 and 2 be 5 and 50, respectively.
What long-run adjustments should be anticipated : What price and quantity of computers should MichiganSux produce to maximize profits? What long-run adjustments should be anticipated? Explain?
Estimate the revenues for the cookie : Mrs. Meadows Cookies provides many varieties of fresh-baked cookies and pastries for specialty shops across the country. Two years ago, a new cookie.
Acquisition by walmart : Jet announced that they were abolishing this annual fee. Given what we know about Costco and their success with this type of pricing
Estimate number of commitments heritage should anticipate : The Heritage Cable Network received commitments to carry the network's programming from 35 cable operators the first year of operation and 90 commitments.
Write a pseudocode for implementing dijkstra algorithm : BIT3253 DATA STRUCTURES & ALGORITHM ANALYSIS - Write a pseudocode for implementing Dijkstra Algorithm - Implement Prims Algorithm on the graph

Reviews

Write a Review

Business Economics Questions & Answers

  How can your company look for a new market spaces

How can your company look for a new market spaces outside its own industry and explain the six paths framework, and how can it be used to create value for your e-business?

  Difference in inflation rates among industrialized nations

The difference in inflation rates among industrialized nations is often only a few percentage points. Nevertheless, annual exchange rates among currencies of industrialized nations have changed by more than 10% in some years. Evaluate what this sugge..

  Expand its loans by a maximum

Assuming the ABC bank has excess reserves of %5,000, it could prudently expand its loans by a maximum

  What would you conclude about the price elasticity

4,000,000 stems were sold that week. During the week of June 5-11, the rose market cleared at a price of $0.20 per stem and 3,800,000 roses were sold. From this information what would you conclude about the price elasticity of supply in the rose ..

  Positive and normative perspective

Why do economists analyze the macro economy from both a positive and normative perspective? In your opinion, which is more important and why?

  Two big questions of economics and the economic way

Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.

  Influences the well-being of bystander

Melissa engages in an activity that influences the well-being of a bystander. In order for Melissa's activity to give rise to an externality, it must be the case that

  Files and manage the money

What is the main purpose of a book keeper? Is it to keep track of all the files and manage the money?

  Determine the eaw if the interest rate

The annual expenses of manufacturing and selling the soap equal $73,500. Determine the EAW if the interest rate is 15%.

  Why does the atc curve always lie above the avc curve

Why does the ATC curve always lie above the AVC curve? Why do the two curves move closer together, but never seem to meet each other? What does the law of diminishing returns have to do with the shape of the AVC and ATC curves? Explain why those curv..

  Depopulation of whales worldwide

How are the depopulation of Whales worldwide and Congested Highways similar in terms of economics? What are some possible solutions to both?

  Will her demand for IHOP pancake become more or less elastic

Suzette Crepe orders pancakes at her local IHOP every morning. When pancakes cost $1.20 per stack, she buys 6 stacks. When the price/stack is $1.80, she buys 5. Microwaveable pancakes become available at Suzette’s grocery store. Will her demand for I..

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