A company produces a special new type of TV. The company has fixed costs of $487,000, and it costs $1500 to produce each TV. The company projects that if it charges a price of $2500 for the TV, it will be able to sell 75O TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2200. Assume a linear demand. What are the company's profits if marginal profit is $0?

A company produces a special new type of TV. The company has fixed costs of $487,000, and it costs $1500 to produce each TV. The company projects that if it charges a price of $2500 for the TV, it will be able to sell 75O TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2200. Assume a linear demand. What are the company's profits if marginal profit is $0?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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