What long run adjustments should the anticipate

Reference no: EM13239420

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 computer is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufactures online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly as 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 +Q^2. If other firms in the industry sell PCs at $600m what price and quantity of computers should you produce to maximize your firm's profits? What long run adjustments should you anticipate? Explain.

Reference no: EM13239420

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