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Profit-maximizing retail price

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Chips Computer Company assembles personal computers and sells them in the retail marketplace. The company is organized into two profit centers: the assembly division and the distribution division. The demand curve facing the company (and the distribution division) is P=3,000 - 10Q. The marginal cost for assembly (which includes purchasing the parts) is constant at $500. The distribution division faces constant marginal distribution costs of $50 per unit.

What is the profit-maximizing retail price and output for the firm as a whole? 

Explain how you got the answer in detail

Reference no: EM131507587

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