Determine the profit-maximizing price, Microeconomics

Determine the Profit-Maximizing Price

If a firm targets a 25 % rate of return on sales, and has unit costs of production of $100, what price should it charge if it uses cost-plus pricing?  If the firm has a demand function P = 10000 – 20Q is the cost-plus price the profit-maximizing price?  If not, determine the profit-maximizing price, quantity and corresponding profit.   Is the target rate of return the profit-maximizing r.o.r.? why or why not?  What important economic considerations, does cost-plus pricing ignore?

Posted Date: 2/15/2013 2:43:38 AM | Location : United States







Related Discussions:- Determine the profit-maximizing price, Assignment Help, Ask Question on Determine the profit-maximizing price, Get Answer, Expert's Help, Determine the profit-maximizing price Discussions

Write discussion on Determine the profit-maximizing price
Your posts are moderated
Related Questions
Data were taken with a Data Acquisition System (DAQ) and stored in the data file 'data.txt'. 'data.txt' is a text file with 3 columns containing the following data: Column 1: Ti


Continuity and Regularity: We should make it a point that once we have entered the market for a particular commodity and have gained some foothold in it, we must strive to ma

Change in consumer income: A change in consumer income may bring about a change in the quantity demanded of a good or service. However, the direction of change in quantity deman


Q. What do you meant by Real GDP? Real GDP:Value of total gross domestic product (which is, all the services and goods produced for money in the economy) adjusted for effects o

Is it possible for a firm to experience a technological change that would increase the marginal product of labor while leaving the average product of labor unchanged?

Types of unemployment: Frictional Unemployment: -It refers to unemployment caused by changes in individual labour markets.This is the type of unemployment resulting from peop


the prevalence of excess capacity is the direct consequence of the existence of monopolistic competition