You are working for the chief economist at Microsoft. Microsoft’s only significant costs to producing and distributing a new version it it’s operating system is $30,000 in wages to its employees, $15,000 in computer testing, and $5,000 in utilities. Microsoft’s marketing department estimates that the demand a new version it it’s operating system is Q = 320 – 0.5 P, with P measured in dollars. What price should Microsoft charge for a new version it it’s operating system? What profit should Microsoft expect?

You are working for the chief economist at Microsoft. Microsoft’s only significant costs to producing and distributing a new version it it’s operating system is $30,000 in wages to its employees, $15,000 in computer testing, and $5,000 in utilities. Microsoft’s marketing department estimates that the demand a new version it it’s operating system is Q = 320 – 0.5 P, with P measured in dollars. What price should Microsoft charge for a new version it it’s operating system? What profit should Microsoft expect?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 18RQ: What are four responses to the claim that people should not behave in the way described in this...

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