A major software developer has estimated the demand for its new personal financesoftware package to be Q=1,000,000P-2 while the total cost of the package is C = 10,000+25Q. If this firm wishes to maximize profit, what percentage markup should it place on thisproduct where percentage markup is defined as 100*(sale price - marginal cost)/marginalcost?4.a.b.C.d.e.ANS:90%100%20%40%250%

Demand equation: Q = 1,000,000P-2Total cost function: C = 10,000 + 25QA firm maximizes profit at MR…

A major software developer has estimated the demand for its new personal finance software package to be Q = 1,000,000P-2 while the total cost of the package is C = 10,000 250. If this firm wishes to maximize profit, what percentage markup should it place on this product where percentage markup is defined as 100*(sale price - marginal cost)/marginal cost? a. b. C. d. e. 90% 100% 20% 40% 250%

A major software developer has estimated the demand for its new personal finance software package to be Q = 1,000,000P-2 while the total cost of the package is C = 10,000 250. If this firm wishes to maximize profit, what percentage markup should it place on this product where percentage markup is defined as 100*(sale price - marginal cost)/marginal cost? a. b. C. d. e. 90% 100% 20% 40% 250%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A major software developer has estimated the demand for its new personal finance
software package to be Q=1,000,000P-2 while the total cost of the package is C = 10,000+
25Q. If this firm wishes to maximize profit, what percentage markup should it place on this
product where percentage markup is defined as 100*(sale price - marginal cost)/marginal
cost?
4.
a.
b.
C.
d.
e.
ANS:
90%
100%
20%
40%
250%

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