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    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

    © BrainMass Inc. brainmass.com October 9, 2019, 6:06 pm ad1c9bdddf
    https://brainmass.com/economics/microeconomics/economics-calculaton-of-price-per-unit-78523

    Solution Preview

    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 ...

    Solution Summary

    Solution contains answer of a multiple choice question.

    $2.19