Case Scenario/Problem Real World is television production company that manufactures movies. The market research department recommends that the company manufacture a new television series and presents the following demand equation x = 25000-50p, where x is the demand at $p per episode. Solve the demand equation for p and discuss the relevance of this information to the company. The financial department also provides the cost function C(x)= 18,000+500x. Analyse the revenue and profit function and identify what the marginal revenue and the marginal profit equation signifies. Determine the exact and approximate revenue from manufacturing the 31st television show. Advise Real World productions on any additional information that you may need that will assist them in future projects.

Case Scenario/Problem Real World is television production company that manufactures movies. The market research department recommends that the company manufacture a new television series and presents the following demand equation x = 25000-50p, where x is the demand at $p per episode. Solve the demand equation for p and discuss the relevance of this information to the company. The financial department also provides the cost function C(x)= 18,000+500x. Analyse the revenue and profit function and identify what the marginal revenue and the marginal profit equation signifies. Determine the exact and approximate revenue from manufacturing the 31st television show. Advise Real World productions on any additional information that you may need that will assist them in future projects.

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

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 9E

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