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A company produces a special new type of TV. The company has fixed costs of $453,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2200 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $1900. Assume a linear demand. What price should the company charge to earn a profit of $747,000?

A company produces a special new type of TV. The company has fixed costs of $453,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2200 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $1900. Assume a linear demand. What price should the company charge to earn a profit of $747,000?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A company produces a special new type of TV. The company has fixed costs of $453,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2200 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $1900. Assume a linear demand. What price should the company charge to earn a profit of $747,000? It would need to charge $ (Round answer to nearest dollar. If more than one answer, separate with a comma.)
Transcribed Image Text:A company produces a special new type of TV. The company has fixed costs of $453,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2200 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $1900. Assume a linear demand. What price should the company charge to earn a profit of $747,000? It would need to charge $ (Round answer to nearest dollar. If more than one answer, separate with a comma.)
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