Question
In: Finance
You are trying to determine te profit maximizing price for video game console. Currently you are...
You are trying to determine te profit maximizing price for video game console. Currently you are charging $180 and selling 2 million consoles per year. It costs $150 to produce a console, and price elasticity of demand for console is 3. What price should you charge for a console. Use excel solver to find the result and the graph.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Two profit maximizing firms produce complementary goods (video games and game consoles, for instance). The demand...
Two profit maximizing firms produce complementary goods (video
games and game consoles, for instance). The demand functions are
given by QA = 32 - 3PA - PB and QB = 32 - PA- 3PB, where QA and QB
are the quantities of goods A and B, and PA and PB are the
respective prices. The unit cost for each producer is 4.
a) Write an expression for the profits of firm B as a function
of the prices PA and...
1. Suppose, a perfectly competitive firm is trying to determine its profit-maximizing level of output. The...
1. Suppose, a perfectly competitive firm is trying to determine
its profit-maximizing level of output. The product sells for $260
per unit. The total cost function is given by C = 1000 + 80Q – 6Q2
+ .2Q3. Find the equilibrium price and maximum profits. Also, find
the shutdown point for this firm.
2. You are the manager of a monopolistically competitive firm,
and your demand and Cost functions are given by Q = 20 – 2P and C =...
A profit-maximizing firm is currently producing output, Q = 3 units and selling at a price...
A profit-maximizing firm is currently producing output, Q = 3
units and selling at a price of p = $10. What MUST be true about
the firm's costs?
A
The firm's Average Variable Cost is less than $10.
B
The firm's Average Total Cost is less than $10.
C
The firm's Marginal Cost is equal to $10.
D
The firm's Average Fixed cost must be less than $10.
Section 1: Using marginal analysis to determine the profit maximizing price and quantity of resources in...
Section 1: Using marginal analysis to determine the
profit maximizing price and quantity of resources in a factor
market under perfect
Orange Inc. sells cell phones in a perfectly competitive market
in the short-run. Capital and labor are two resource factors used
to produce the cell phones. Capital is fixed in the short-run but
labor can vary. The market for hiring labor is a perfectly
competitive market.
Labor is measured in worker weeks. Each worker week costs $700
of wages...
Question: Determine the profit maximizing price and quantity of resources in factor markets under perfect and...
Question: Determine the profit maximizing price and quantity of
resources in factor markets under perfect and imperfect competition
by use of marginal analysis.
I understand that firms will maximize profit or minimize loss by
producing the output where marginal revenue equals marginal cost;
however, does that apply to perfect and imperfect?
I just feel like the answer requires more than the firms desire
for MR = MC.
How do you find the profit maximizing PRICE (not level of output) on a graph for...
How do you find the profit maximizing PRICE (not level of
output) on a graph for a monopoly with demand, marginal revenue,
marginal cost, and average total cost curves.
Find the point where MR = MC and go straight over to the price
axis.
Find the point where demand hits marginal cost and go straight
over to the price axis.
Find the point where MR = MC, go straight up until you hit the
demand curve, and then go straight...
How do you find the profit maximizing PRICE (not level of output) on a graph for...
How do you find the profit maximizing PRICE (not level of
output) on a graph for a monopoly with demand, marginal revenue,
marginal cost, and average total cost curves.
Find the point where MR = MC and go straight over to the price
axis.
Find the point where demand hits marginal cost and go straight
over to the price axis.
Find the point where MR = MC, go straight up until you hit the
demand curve, and then go straight...
Do you think the monopolist acts as profit maximizing ( price , cost ) ? illustrate...
Do you think the monopolist acts as profit maximizing ( price ,
cost ) ? illustrate your answer with graph.
Determine the profit maximizing quantity and profit levels; and then graph (in general form) the outcomes...
Determine the profit maximizing quantity and profit levels; and
then graph (in general form) the outcomes for the production
function ( standard form with q(K,L) curve ) , cost/revenue
functions (with MC, AC, and P curve/line) and profit function (
profit (q) curve ) for the following all graphs have to display q*:
1. C(q)=1000+q^2, P=10000 2. C(q)=1000+4q^3, P=10000 3.
C(q)=1000+q^1.5, P=10000 4. Explain the differences between your
outcomes and give a plausible reason for the difference between 1
&...
What would be the profit-maximizing price for the firm to charge?
What would be the profit-maximizing price for the firm to
charge?
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