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lPlease help answer this equations. Thank you! 7. Exercise 14.8 The Pear Computer Company just developed a totally revolutionary new personal computer. Pear estimates that

lPlease help answer this equations. Thank you!

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7. Exercise 14.8 The Pear Computer Company just developed a totally revolutionary new personal computer. Pear estimates that it will take competitors at least two years to produce equivalent products. The demand function for the computer is estimated to be P : 2,500 , 5006) where Q is millions of computers. The marginal (and average variable) cost of producing the computer is $900. Assuming Pear acts as a monopolist in its market, the profitmaximizing price and output levels are per computer and \\:l miiiion computers, respectively. The total contribution to prots and fixed costs at this output level is million. Pear Computer is considering an alternative pricing strategy of price skimming. It plans to set the following schedule of prices over the coming two years: Complete the following table by calculating the contribution to prot and overhead for each of the 10 time periods and prices. Price Quantity Sold Total Contribution Time Period (1;) (Million) (5 Million) 1 2,400 0.2 $ 2 2,200 0.2 $ 3 2,000 0.2 $ 4 1,800 0.2 $ 5 1,700 0.2 $ 6 1,600 0.2 $ 7 1,500 0.2 $ 8 1,400 0.2 $ 9 1,300 0.2 $ 10 1,200 0.2 $ Over the 10 periods, the total contribution to profits and xed costs from price skimming is million

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