Economics : Calculaton of price per unit
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The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship:
Q = 400 - .5P
where P is price. Total costs (including a "normal" return to the owners) of producing Q units per period are:
TC = 20,000 + 50Q + 3Q2. What price will be charged?
a. $650/unit
b. $65/unit
c. $6500/unit
d. $6.50/unit
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The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship:
Q = 400 - .5P
where P is price. Total costs (including a "normal" return to the owners) of producing ...
Purchase this Solution
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