a management consultant has been asked to calculate and analyze market demand for a new video game that is about to be offered in both retail (R) and wholesale (W) customer over the internet. The client estimates a Fixed Cost of 750,000 per year and a Marginal cost of 20/unit. Based on their market study, the following demand functions were derived: Pr = 62.50 – 0.0005Qr and Pw = 50 - 0.002Qw; Pr is the Price for Retail, Pw is the price for wholesale, Qr is the quantity for Retail and Qw is the quantity for wholesale, Complete the table below by calculating the quantity demanded both for retail and wholesale, market demand, Total Revenue, Total Cost and Profit. PRICE Retail Demand Total Revenue (P x Q) Total Cost PROFIT 65 60 55 50 45 40 35
a management consultant has been asked to calculate and analyze market demand for a new video game that is about to be offered in both retail (R) and wholesale (W) customer over the internet. The client estimates a Fixed Cost of 750,000 per year and a Marginal cost of 20/unit. Based on their market study, the following demand functions were derived: Pr = 62.50 – 0.0005Qr and Pw = 50 - 0.002Qw; Pr is the Price for Retail, Pw is the price for wholesale, Qr is the quantity for Retail and Qw is the quantity for wholesale, Complete the table below by calculating the quantity demanded both for retail and wholesale, market demand, Total Revenue, Total Cost and Profit. PRICE Retail Demand Total Revenue (P x Q) Total Cost PROFIT 65 60 55 50 45 40 35
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
- a management consultant has been asked to calculate and analyze market
demand for a new video game that is about to be offered in both retail (R) and wholesale (W) customer over the internet. The client estimates a Fixed Cost of 750,000 per year and a Marginal cost of 20/unit. Based on their market study, the following demand functions were derived: Pr = 62.50 – 0.0005Qr and Pw = 50 - 0.002Qw; Pr is thePrice for Retail, Pw is the price for wholesale, Qr is the quantity for Retail and Qw is the quantity for wholesale,
- Complete the table below by calculating the quantity demanded both for retail and wholesale, market demand, Total Revenue, Total Cost and Profit.
PRICE |
Retail Demand
|
Total Revenue (P x Q) |
Total Cost |
PROFIT |
65 |
||||
60 |
||||
55 |
||||
50 |
||||
45 |
||||
40 |
||||
35 |
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