Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

War Games, Inc. produces games that simulate historical battles. The market is small however loyal and War Games is the largest manufacturer. The company is now thinking about introducing a new game in honor of the sixtieth anniversary of the outbreak of World War II. Based on historical data regarding sales, War Games management forecasts demand for this game to be P = 200 - 0.002 Q, where Q denotes unit sales per year and P denotes the price in dollars. The cost of manufacturing (based on royalty payments to the designer of the game and the cost of printing and distribution) is C = 125,000 + 15 Q.

1. If the goal of War Games is to maximize profits, compute the firm’s optimal output, price, and profits?

2. If instead, the company’s goal is to maximize sales revenues, what is its optimal price and quantity?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91226719

Have any Question?


Related Questions in Microeconomics

Question during the 1990s capital spending grew faster than

Question: During the 1990s, capital spending grew faster than consumption. As a result of this, total capacity also grew faster than usual, so the rate of capacity utilization fell from 1994 to 2000 in spite of a booming ...

Question the directors of ace airlines have decided to

Question: The directors of Ace Airlines have decided to incentivize their 1,000 employees by issuing every one of them 200 shares of stock. (Assume there is no problem of equity dilution, because the company has 40 milli ...

Question assume that a 1 change in the inflation rate

Question: Assume that a 1% change in the inflation rate causes a 1% increase in nominal interest rates, which in turn causes a 1% drop in real growth the following year. During the latter half of the 1990s, real growth a ...

Question - after reading business cycles by christina d

Question - After reading Business Cycles By Christina D. Romer, answer this: What were the causes of business cycles before 1914? What happened to Business Cycles between 1929 and 1948? What was the history of Business C ...

Question in the late 1970s interest rates soared but the

Question: In the late 1970s interest rates soared but the economy remained healthy. Why did higher interest rates fail to slow down the economy in 1977-8, but cause recessions in 1980 and 1981? The response must be typed ...

Question suppose you are a supply-side economist who is an

Question: Suppose you are a supply-side economist who is an advisor to the president. If the economy is in recession, what would your fiscal policy prescription be? The response must be typed, single spaced, must be in t ...

Question the fence between two farmers properties has

Question: The fence between two farmer's properties has fallen down, the cost of having it replaced is $1,000. This causes problems for both as one farmers sheep keeps straying onto the other farmer's property and eating ...

Question think of the commonality and consistencies of

Question: Think of the commonality and consistencies of where consumers spend their money in a recession and during the holiday season. What determinations can you make about purchases? Is there a pattern here? The respo ...

Question - lashondra is the owneroperator of an interior

Question - Lashondra is the owner/operator of an interior design firm. Last year she earned $400,000 in total revenue. Her explicit costs were $200,000 (assume that this amount represents the total opportunity cost of th ...

Question set up a ricardo-type comparative advantage

Question: Set up a Ricardo-type comparative advantage numerical example with two countries and two goods. Distinguish "absolute advantage" from "comparative advantage" in the context of your example. Then select an inter ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved