Nintendo, a leading manufacturer of video games is about to introduce four new games. The accompanying table summarizes price and cost data. Combined fixed costs equal $500,000. Game-1 Game-2 Game-3 Game-4 Selling price $50 $45 $30 $20 Variable cost per unit $20 $15 $10 $10 Determine a joint total revenue function for sales of the video games. Determine a joint total cost function for the development of video games. Determine the profit function for sales of the video games. What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games?
Nintendo, a leading manufacturer of video games is about to introduce four new games. The accompanying table summarizes price and cost data. Combined fixed costs equal $500,000. Game-1 Game-2 Game-3 Game-4 Selling price $50 $45 $30 $20 Variable cost per unit $20 $15 $10 $10 Determine a joint total revenue function for sales of the video games. Determine a joint total cost function for the development of video games. Determine the profit function for sales of the video games. What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games?
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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Q-1
Nintendo, a leading manufacturer of video games is about to introduce four new games. The accompanying table summarizes price and cost data. Combined fixed costs equal $500,000.
|
|
Game-1 |
Game-2 |
Game-3 |
Game-4 |
|
Selling price |
$50 |
$45 |
$30 |
$20 |
|
Variable cost per unit |
$20 |
$15 |
$10 |
$10 |
- Determine a joint total revenue function for sales of the video games.
- Determine a joint total cost function for the development of video games.
- Determine the profit function for sales of the video games.
- What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games?
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