War game maximizing profit


Problem: Based on historical data regarding sales, War Games management forecasts demand for the game to be P = 50 - 0.002Q, where Q denotes unit sales /year, & P denotes price in dollars. The cost of manufacture is C = 140,000 + 10Q.

Calculate the following, assuming that War Game maximizes profit:

a. quantity

b. price

c. total cost

d. total revenue

c. total profit

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Microeconomics: War game maximizing profit
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