Firm K is a leading maker of water-proof outerwear. During the winter months, demand for its main line of waterproof coats is given by P = 800 − 0.14Q, where P denotes price in dollars and Q is quantity of units sold per month. The firm produces coats in a single plant (which it leases by the year). The total monthly cost of producing these coats is estimated to be C = 175,000 + 300Q + 0.2Q2. (Leasing the plant accounts for almost all of the $175,000 fixed cost.) What price should the firm charge to sell its profit-maximizing output Q? (Round your answer to the nearest whole number.) Give correct typed answer with proper explanation
Firm K is a leading maker of water-proof outerwear. During the winter months, demand for its main line of waterproof coats is given by P = 800 − 0.14Q, where P denotes price in dollars and Q is quantity of units sold per month. The firm produces coats in a single plant (which it leases by the year). The total monthly cost of producing these coats is estimated to be C = 175,000 + 300Q + 0.2Q2. (Leasing the plant accounts for almost all of the $175,000 fixed cost.) What price should the firm charge to sell its profit-maximizing output Q? (Round your answer to the nearest whole number.) Give correct typed answer with proper explanation
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 5E
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Firm K is a leading maker of water-proof outerwear. During the winter months, demand for its main line of waterproof coats is given by P = 800 − 0.14Q, where P denotes
Give correct typed answer with proper explanation
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