Determine comchip optimal output, Microeconomics

Assignment Help:

You are the CEO of Comchip, a firm that sells specialized computers. Each of the firm's computers contain a unique chip that is produced at Comchip's west coast plant at a cost of Cw (Qc) = Qc2. Once produced, the chips are shipped exclusively to the firm's east coast plant. There, the computers are assembled, boxed, and shipped to the market at a cost of Ce (Q) = 200Q. An economic consultant recently estimated the demand for Comchip's computers and found it to be P= 5,000 - Q.

a. Determine Comchip's optimal output and price for computers.

b. Explain how Compchip can induce plant managers to produce the required number of chips and computers.

(Note:  W = west coast plant; E = east coast plant; QC = output of West Coast plant; and Q = output of East Coast plant.)


Related Discussions:- Determine comchip optimal output

The supply curve , The Supply Curve  – The supply curve exhibits how mu...

The Supply Curve  – The supply curve exhibits how much of a good manufacturerss are willing to sell at a particular given price, holding constant  other factors that can aff

Define the price elasticity, Price elasticity is used in economics to deter...

Price elasticity is used in economics to determine the changes in price of goods and services. It measures the change in price demanded and quality supplied. Determinants of pri

Mr A, true or false ,It is not possible for the compensated own price elast...

true or false ,It is not possible for the compensated own price elasticity to equal the uncompensated own price elasticity.uestion #Minimum 100 words accepted#

Exchange rate, if a country is managing its exchange rate what will do to c...

if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de

Find the elasticity of demand for a quantity, The demand curve for gasoline...

The demand curve for gasoline is P = 200 - 10Q.   a. Find the elasticity of demand for a quantity of 8.  Does this number imply that quantity demanded is sensitive to price chan

Market supply of labour, Use a graphical illustration to describe briefly w...

Use a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more women en

Elasticity, discuss how a knowledge of price elasticity and income elastici...

discuss how a knowledge of price elasticity and income elasticity be of practical use to a firm

Micro, a. Suppose the demand for saline solution is perfectly inelastic for...

a. Suppose the demand for saline solution is perfectly inelastic for contact lens wearers. If the government imposes a tax on saline solution, what occurs? Be sure to tell what hap

Production possibility curve, what are things you need to look in manner of...

what are things you need to look in manner of functions,elements,purpose,types and definitions?

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