Determine comchip optimal output, Microeconomics

You are the CEO of Comchip, a firm that sells specialized computers. Each of the firm's computers contain a unique chip that is produced at Comchip's west coast plant at a cost of Cw (Qc) = Qc2. Once produced, the chips are shipped exclusively to the firm's east coast plant. There, the computers are assembled, boxed, and shipped to the market at a cost of Ce (Q) = 200Q. An economic consultant recently estimated the demand for Comchip's computers and found it to be P= 5,000 - Q.

a. Determine Comchip's optimal output and price for computers.

b. Explain how Compchip can induce plant managers to produce the required number of chips and computers.

(Note:  W = west coast plant; E = east coast plant; QC = output of West Coast plant; and Q = output of East Coast plant.)

Posted Date: 2/21/2013 1:26:38 AM | Location : United States







Related Discussions:- Determine comchip optimal output, Assignment Help, Ask Question on Determine comchip optimal output, Get Answer, Expert's Help, Determine comchip optimal output Discussions

Write discussion on Determine comchip optimal output
Your posts are moderated
Related Questions
Question 1: a) Describe the different types of unemployment that exist. b) Critically examine how monetary policy will be used to deal with inflation. c) Critically deter

Price elasticity of supply: It is the responsiveness of quantity supplied of a commodity to a change in the price of the commodity and measured as percentage change in quantit

TC = Q3 – 8Q2 + 68Q + 4, get the median and mode

Valence Bond Theory Explains, but does not predict the shape. Valence Bond Theory Cannot explain colour and spectra. Valence Bond Theory Qualitative explanations; does not expl

CleanAuto Inc. has four workers: Julie, Ian, Devon, and Thomas. CleanAuto Inc. provides two services: interior vacuuming and exterior wash. Julie can perform each of these tasks in

Elasticity of Demand This is a measure of how responsive the sales volume of goods is to changes in that product's price, equal to the marginal change in sales, divided by the

5 stratgies that can be used to regulate skilled labour in developing countries

Q. Defien Hyper - Inflation? Hyper-Inflation:It's a situation of extremely rapid inflation (reaching 100% per year or more), frequently resulting from a condition of political

Methods of Forecasting The various methods of forecasting demand may be grouped under the followings categories: Opinion Polling Method: In this method the opinion

Given that TC=1000+10Q-0.9Q^2+0.04Q^3,,Find the rate of output Q that result in minimum Average variable cost