Given: Desktop Publishing Software Inc, develops and markets software packages for business computers. Although, sales have grown rapidly during recent years, the company's management fears that a recent onslaught of new competitors may severly retard future growth opportunities. Therefore, it believes that the time has come to "get big or get out". The marketing and accounting departments have provided management with the following monthly demand and cost information: P = $1,000 - $1Q TC = $50,000 + $100Q Question 1: Find; Derive the Marginal Revenue & Marginal Cost Equations TR = ___________ MR = ___________ TC = ___________ MC = ___________ Question 2: Profit Maximization: Solve for Monthly Q, P, TR, TC and Profit Q = ___________ P = ___________ TR = __________ TC = __________ PROFIT = __________ Question 3: Revenue Maximization: Solve for monthly Q, P, TR, TC, and Profit Q = ____________ P = ____________ TR = ___________ TC = ___________ Profit = __________
Given:
Desktop Publishing Software Inc, develops and markets software packages for business computers. Although, sales have grown rapidly during recent years, the company's management fears that a recent onslaught of new competitors may severly retard future growth opportunities. Therefore, it believes that the time has come to "get big or get out". The marketing and accounting departments have provided management with the following monthly demand and cost information:
P = $1,000 - $1Q
TC = $50,000 + $100Q
Question 1:
Find; Derive the Marginal Revenue & Marginal Cost Equations
TR = ___________
MR = ___________
TC = ___________
MC = ___________
Question 2:
Profit Maximization: Solve for Monthly Q, P, TR, TC and Profit
Q = ___________
P = ___________
TR = __________
TC = __________
PROFIT = __________
Question 3:
Revenue Maximization: Solve for monthly Q, P, TR, TC, and Profit
Q = ____________
P = ____________
TR = ___________
TC = ___________
Profit = __________
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