Calculate profit maximizing output level , Microeconomics

Assignment Help:

Qustions:

You are the sales manager at SoftSystem, a dominant firm that produces operating system. The new operating system, Doors XR, has been newly developed. Its demand is estimated that:

Q = 100,000 - 200P

 (i)    As a sales manager you want to maximize the total revenue. How much do you want to charge for the Doors XR?

The cost function for Doors XR is given by

1093_cost function for Doors.png

(ii)   Your colleague, the production manager argues that his job is to minimize the average total cost. What output level of Q does the production manager want to choose? What is the difference in the output level between what you (the sales manager) want to sell and the production manager wants to produce?

(iii)   For the stockholders (and CEO) of SoftSystem, profit maximization is the best interest. What is the profit maximizing output level of the new product?

 

 


Related Discussions:- Calculate profit maximizing output level

Narrowness definition of commodity, Why narrowness of definition of a commo...

Why narrowness of definition of a commodity may influence price elasticity of demand

Nash equilibrium, Think of the Golden Ball game. Now player 1 is money-mind...

Think of the Golden Ball game. Now player 1 is money-minded and jealous, and player 2 is very good-hearted, so the payoff matrix is follows:                                Playe

Point elasticity of demand for demand function Q=10-2p, calculate point ela...

calculate point elasticity of demand function Q=10-2p for decrease in price from Rs3 to Rs2

Managerial economics, Below are the two estimated cost functions. describe ...

Below are the two estimated cost functions. describe what type of data was most likely used to estimate each one and why. Explain which is a short- run function, determine the leve

Microenconomics 3, Output 0 Fixed cost $100 Varaible Cost 40 what is the T...

Output 0 Fixed cost $100 Varaible Cost 40 what is the Total cost and Total revenue also the Profit/Loss

Externalities, What are externalities? Give an example of positive and nega...

What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities?

Help PLease, In an essay of at least four well-developed paragraphs, discus...

In an essay of at least four well-developed paragraphs, discuss U.S. economic policy. Be sure to include the following information in your essay: Compare and contrast the economi

Production function and returns to factors, what is the law of diminishing ...

what is the law of diminishing marginal product? explanation with the help of proper schedule and diagram.

Explain and illustrate the economy adjustment in medium run, 1- Suppose the...

1- Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model. a) explain and illustrate the economy adjustment ( in the medium run)

Write Your Message!

Captcha
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