Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 13, Problem 1.1CE
To determine
To describe:The reason for Airbus go ahead
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A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150 − 0.01 × Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing) = $50,000 and the variable cost per unit = $40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 6,000 units per year.
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150 - 0.02 x Demand for an annual printing of this particular product. The fixed costs
per year (ie., per printing) = $46,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 3,000 units per year.
The maximum profit that can be achieved is $. (Round to the nearest dollar.)
The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.)
Enter your answer in each of the answer boxes.
A large company in the communication and publishing industry has quantified the relationship between the price of one
of its products and the demand for this product as Price = 160 -0.02 × Demand for an annual printing of this particular
product. The fixed costs per year (i.e., per printing) = $51,000 and the variable cost per unit = $35. What is the
maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected
to be more than 4,000 units per year.
The maximum profit that can be achieved is $144,313. (Round to the nearest dollar.)
The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.)
Chapter 13 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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