Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Unendo, a large computer game manufacturer has estimated that the demand function for their game Call of Duty: WWIII is as follows: p = 80

Unendo, a large computer game manufacturer has estimated that the demand function for their game "Call of Duty: WWIII" is as follows:

p = 80 - 0.05q; where p is the price of a game and q is the number of game produced and sold per week. They estimate that their cost function in dollars is

C(q) = 17q + 5000;

where the fixed cost is $5000 and the marginal cost is $17 per game Unendo wishes to maximize the weekly profit of producing and selling the game.

Find the price, p, per game that generates maximum profit. (Round your answer to 2 decimal places, if necessary)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Modeling

Authors: Simon Benninga

3rd Edition

0262026287, 9780262026284

More Books

Students also viewed these Accounting questions

Question

How often do you meet with your graduate students?

Answered: 1 week ago