Homework Help is Here – Start Your Trial Now!
Business
Economics
(ou are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the ocal university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after he sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q= 1,400 – 4P, and its weekly cost of producing computers is qQ) = 1,600 + 2Q?. f other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits? nstructions: Round your response to the nearest whole number. Quantity: ( ] computers nstructions: Round your response to the nearest penny (two decimal places). Price: $ What long-run adjustments should you anticipate? O Exit by other firms, increasing your profits. O Entry by other firms, reducing your profits. O Exit by other firms along with decreased profits. O Entry by other firms along with increased profits.

(ou are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the ocal university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after he sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q= 1,400 – 4P, and its weekly cost of producing computers is qQ) = 1,600 + 2Q?. f other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits? nstructions: Round your response to the nearest whole number. Quantity: ( ] computers nstructions: Round your response to the nearest penny (two decimal places). Price: $ What long-run adjustments should you anticipate? O Exit by other firms, increasing your profits. O Entry by other firms, reducing your profits. O Exit by other firms along with decreased profits. O Entry by other firms along with increased profits.

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter23: Managing Vertical Relationships
Section: Chapter Questions
Problem 1MC
See similar textbooks
icon
Related questions
Question
1
You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after the sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q= 1,400 – 4P, and its weekly cost of producing computers is CQ) = 1,600 + 2Q2. If other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits? Instructions: Round your response to the nearest whole number. Quantity:| |computers Instructions: Round your response to the nearest penny (two decimal places). Price: $ What long-run adjustments should you anticipate? O Exit by other firms, increasing your profits. O Entry by other firms, reducing your profits. Exit by other firms along with decreased profits. O Entry by other firms along with increased profits.
Transcribed Image Text:You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after the sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q= 1,400 – 4P, and its weekly cost of producing computers is CQ) = 1,600 + 2Q2. If other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits? Instructions: Round your response to the nearest whole number. Quantity:| |computers Instructions: Round your response to the nearest penny (two decimal places). Price: $ What long-run adjustments should you anticipate? O Exit by other firms, increasing your profits. O Entry by other firms, reducing your profits. Exit by other firms along with decreased profits. O Entry by other firms along with increased profits.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Nash Equilibrium
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS