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

True or false, economists would predict that if salaries increased for engg...

economists would predict that if salaries increased for engginieers and decreasded for mba braduates that fewer people would go to graduate school in business and more would go in

managerial economics, IS INDIAN COMPANIES RUNNING A RISK BY NOT GIVING ATT...

IS INDIAN COMPANIES RUNNING A RISK BY NOT GIVING ATTENTION TO COST CUTTING?

What is working of world bank, Q. What is working of world Bank? An int...

Q. What is working of world Bank? An international financial organization formed after World War II and based in Washington D.C. Its supposed purpose is to promote economic dev

Draw the marginal benefit curve for nutrient cleanup, You are tasked with e...

You are tasked with evaluating a project for reducing nutrient (nitrogen and phosphorus) loading into the Gulf of Mexico (GOM). These nutrients make their way into the GOM by way o

102, why does the quantity of salt tend to be unresponsive to changes in it...

why does the quantity of salt tend to be unresponsive to changes in its price

INTERMEDIATE MICRO ECONOMICS, AS STUDENT OF ECONOMICS ELABORATE ON THE KALD...

AS STUDENT OF ECONOMICS ELABORATE ON THE KALDOR-HISCKS COMPENSATION

Concept of supply, #question.using a well illustrated diagram, explain the ...

#question.using a well illustrated diagram, explain the concept of producers equilibrium .

Simple inventory model, Simple Inventory Model  Firstly, the product l...

Simple Inventory Model  Firstly, the product level initiates a demand, which generates a demand at the component level and then in turn at the raw material level. Think of an

Protec tionism and free trade, what is the south africas governments standp...

what is the south africas governments standpoint on international trade

Game theory, The following represents the potential outcomes of your first ...

The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the employer moving first, indicate

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