Q1. Game console manufacturing determines that in order to sell Q units, the price per unit (in dollar) must decreased by the linear demand (the demand function)P(Q)= 800- 0.3Q($/device) The manufacturer also determine that the cost depends on the volume of production and includes a fixed part 500,000($) and a variable part 500Q , that isC(Q)= 500000+ 500QWhat price per unit must be charged to get the maximum profit? Q1. Game console manufacturing determines that in order to sell Q units, the price per unit (indollar) must decreased by the linear demand (the demand function)P(Q)= 800- 0.3Q($/device)The manufacturer also determine that the cost depends on the volume of production andincludes a fixed part 500,000($) and a variable part 500Q , that isC(Q)= 500000+ 500QWhat price per unit must be charged to get the maximum profit?

The term “profit” is defined as the excess of the total revenue over the total cost. Total revenue…

Game console manufacturing determines that in order to sell Q units, the price per unit (in dollar) must decreased by the linear demand (the demand function) P(Q)= 800- 0.3Q($/device) The manufacturer also determine that the cost depends on the volume of production and includes a fixed part 500,000($) and a variable part 500Q , that is C(Q)= 500000+ 500Q What price per unit must be charged to get the maximum profit?

Game console manufacturing determines that in order to sell Q units, the price per unit (in dollar) must decreased by the linear demand (the demand function) P(Q)= 800- 0.3Q($/device) The manufacturer also determine that the cost depends on the volume of production and includes a fixed part 500,000($) and a variable part 500Q , that is C(Q)= 500000+ 500Q What price per unit must be charged to get the maximum profit?

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

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 2.4CE

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