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What price maximizes profit

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Reference no: EM131380403

1. Show that for the demand curve q = 40 - 2p the consumer places a value of exactly $256 on the first 16 units

2. (Requires calculus) Suppose the demand for a computer by a leading corporate client (for p≥100) is given by 200000 / p2 . Assume the cost of producing a computer is $100.

a. If the same price is charged for each computer, what price maximizes profit?

b. If you charge HP for the first CUT computers and LP for remaining computers purchased, how can you maximize profit?

Reference no: EM131380403

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