A manufacturer with exclusive rights to a new industrial machine is planning to sell a limited number of them and estimates that if x machines are supplied to the domestic market and y to the foreign market, the machines will sell for 320 – thousand dollars apiece domestically and for 630 - thousand dollars apiece 20 abroad. a) How many machines should the manufacturer supply to the domestic market to generate the largest possible revenue at home? b) How many machines should the manufacturer supply to the foreign market to generate the largest possible revenue abroad? c) Solve for the maximum revenue level in $1000s.

A manufacturer with exclusive rights to a new industrial machine is planning to sell a limited number of them and estimates that if x machines are supplied to the domestic market and y to the foreign market, the machines will sell for 320 – thousand dollars apiece domestically and for 630 - thousand dollars apiece 20 abroad. a) How many machines should the manufacturer supply to the domestic market to generate the largest possible revenue at home? b) How many machines should the manufacturer supply to the foreign market to generate the largest possible revenue abroad? c) Solve for the maximum revenue level in $1000s.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.7CE

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