A consultancy firm, focusing on capacity building in Research Methodology has a demand function Q = 10 – 0.1P where cost per unit function as 400 Q-8+ Where Q is the number of capacity building hours and P is the price per hour. a) Determine the number of capacity building hours which maximizes the company's profit. b) How much should the rm charge for the capacity building? c) Find the total profit at the profit maximizing level of consultancy. d) Using the own price elasticity of demand. e) Comment on the firm's pricing policy options.

A consultancy firm, focusing on capacity building in Research Methodology has a demand function Q = 10 – 0.1P where cost per unit function as 400 Q-8+ Where Q is the number of capacity building hours and P is the price per hour. a) Determine the number of capacity building hours which maximizes the company's profit. b) How much should the rm charge for the capacity building? c) Find the total profit at the profit maximizing level of consultancy. d) Using the own price elasticity of demand. e) Comment on the firm's pricing policy options.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 9E

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