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?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Monopoly
Section: Chapter Questions
Problem 6PA
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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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80e24e90-7f51-4e65-80ef-984eb7a35b32%2Fe041c895-9b25-4ae3-a766-c21be58ec560%2Ff0q59pg_processed.jpeg&w=3840&q=75)
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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