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

Hw, hi, how much does it cost for you guys to write a 5-6 pages on a articl...

hi, how much does it cost for you guys to write a 5-6 pages on a article on supply and demand? However, on the 5-6 pages it wont all be writings..i need a few graphs. i would need

Teacher-wellston high school, When the curve that envelops the sweries of p...

When the curve that envelops the sweries of possible short-run average total cost curves is horizontal, this means that they are a. economies of scale, b. dieconomies of scale, co

Money market, Money market: The money market is a market of short-term...

Money market: The money market is a market of short-term loans. It consists of financial institutions having surplus fund to lend on short-term basis, and those wishing to bor

Meaning and characteristics of plural sense and singlural , meaning and cha...

meaning and characteristics of plural sense and singlural

Keynes theory and expectations, Expectations played a major role in Keynes'...

Expectations played a major role in Keynes' theory of the determination of aggregat output and employment in market economies in the short run. Expectations about future yields on

Determine the rule of divergence in general, Determine The Rule of Divergen...

Determine The Rule of Divergence in General Though even if attention is confined to non-communist-ruled economies there still has been huge divergence in relative output per w

Restrictions on international trade, Protection against dumping: It co...

Protection against dumping: It could be looked at as the export of commodities priced below cost of production. Dumping is generally looked upon as an unfair trading practice

Aggregate demand and aggregate supply, In a small rural town, 150 people wo...

In a small rural town, 150 people would like to be employed (this is the supply of labor). In order to make profits, capitalists hire some of these workers to produce grain. Those

2 econ problems, I have the answers to these two questions, but I need to k...

I have the answers to these two questions, but I need to know HOW to get these answers. Thanks. Question 1 Suppose there are two goods beverage and pizza and two inputs land, T

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