The price and quantity of computers that should be produced to maximize the firm’s profits will be $360 and 80 computers.
The demand curve for College Computers is given as (Q) = 800 - 2P where, P = 400 - 0.5Q.
Therefore, the weekly total revenue will be:
= (400 - 0.5Q) × Q
= 400Q - 05Q²
Marginal revenue = 400 - Q
Weekly cost of producing computers will be:
= 1200 + 2Q²
Marginal cost = 4Q
Maximum profit will b earned when MR = MC
Therefore, 400 - Q = 4Q
Collect like terms
4Q + Q = 400
5Q = 400
Q = 400/5
Q = 80
Quantity = 80 units
Therefore, the price will be:
P = 400 - 0.5Q
P = 400 - 0.5(80)
P = 400 - 40.
P = 360
The price is $360.
The weekly total revenue will be:
TR = price × quantity.
TR = 360 × 80
TR = $28800
The total cost will be:
TC = 1200 + 2(80)²
TC = 1200 + 12800
TC = 14000
Therefore, the profit will be:
= TR - TC
= $28800 - $14000
= $14800
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This is the answer
Answer: Option (B) is correct.
Explanation:
Product costs are the that are incurred during the production of a product. Various costs are involved in this product cost such as direct labor cost, consumable production supplies, direct material, etc. It is calculated by multiplying the cost driver rate to the number of the units of cost driver that are used in the production of each product.
Answer:
The correct answer is C. If aggregate demand and aggregate supply intersect on the vertical potential GDP curve; this indicates that the economy is at full employment.
Explanation:
Full employment indicates the condition in which all those who want a job have access to all the hours of work they need with "fair wages". As people change jobs, full employment means a stable unemployment rate around 1.2% of the total workforce, but does not allow for underemployment where part-time workers cannot find the hours they need to live with dignity.
In macroeconomics, full employment is sometimes defined as the level of employment at which there is no cyclical unemployment or low demand unemployment.
Full employment raises the levels of both supply, since there is full occupation of the providers of goods and services; and demand, since society in general has more money to spend on goods and services.