A company produces a special new type of TV. The company has fixed costs of $453,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2200 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $1900. Assume a linear demand. What price should the company charge to earn a profit of $747,000?

A company produces a special new type of TV. The company has fixed costs of $453,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2200 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $1900. Assume a linear demand. What price should the company charge to earn a profit of $747,000?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 6PA

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