Calculate profit maximizing output level , Microeconomics

Assignment Help:

Qustions:

You are the sales manager at SoftSystem, a dominant firm that produces operating system. The new operating system, Doors XR, has been newly developed. Its demand is estimated that:

Q = 100,000 - 200P

 (i)    As a sales manager you want to maximize the total revenue. How much do you want to charge for the Doors XR?

The cost function for Doors XR is given by

1093_cost function for Doors.png

(ii)   Your colleague, the production manager argues that his job is to minimize the average total cost. What output level of Q does the production manager want to choose? What is the difference in the output level between what you (the sales manager) want to sell and the production manager wants to produce?

(iii)   For the stockholders (and CEO) of SoftSystem, profit maximization is the best interest. What is the profit maximizing output level of the new product?

 

 


Related Discussions:- Calculate profit maximizing output level

Bookseller, Nile.com, the online bookstore, wants to increase it''s total r...

Nile.com, the online bookstore, wants to increase it''s total revenue. One strategy is to offer a 10% discount on every book that sells. Nile.com knows it''s customers can be divid

Describe consumer price index, Q. Describe Consumer Price Index? Consum...

Q. Describe Consumer Price Index? Consumer Price Index:Consumer price index (CPI) is a measure of overall price level paid by consumers for various services and goods they purc

Short period analysis - theory of production, SHORT PERIOD ANALYSIS: S...

SHORT PERIOD ANALYSIS: Short period in production refers to a time when some inputs remain fixed. A fixed input is one, whose quantity cannot be changed readily, whereas, a va

Explain the phrase price rationing means, Explain what the phrase “price ra...

Explain what the phrase “price rationing” means. Price rationing is the method by which the market system assigns goods and services to consumers while quantity demanded exceeds

Floating exchange rates, Floating exchange rates There are two basic s...

Floating exchange rates There are two basic systems that can be used to determine the exchange rate between one country's currency and another's: a floating exchange rates (al

Describe trade unions and collusion among employees, Trade union can also p...

Trade union can also pay a useful role in improving the wages of the workers without causing adverse effects on employment. This case which is intensely associated with the idea of

Factors affecting demand forecasting - credit conditions, The availability ...

The availability of credit and hire purchase facility tends to push up the demand for consumer durables. In India for consumer durables lie Refrigerators television scooters etc, h

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd