Question
An economist estimates the demand function as P = 1250 - 7.5 Q, where P is in dollars and Q is in number of Lenovo
An economist estimates the demand function as P = 1250 - 7.5 Q, where P is in dollars and Q is in number of Lenovo Laptops sold per week.
She also estimates the weekly expenses vary with output according to the following cost equation:
TC = 10,000 + 25Q - 7.5Q2 + 1/3 Q3.
What are the firm's fixed and variable cost? What are the firm's total revenues and total costs? Is this firm making an economic profit, economic loss or a normal profit?
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Essentials of Business Driven Information Systems
Authors: Paige Baltzan, Amy Phillips
1st edition
1260004716, 978-0073376721
