Viking InterWorks is one of many manufacturers that supplies memory products to original equipment manufacturers (OEMS) of desktop systems. The CEO recently read an article in a trade publication that reported the projected demand for desktop systems to be: addesktop = 1600 – 2Pdesktop + 0.6M (in millons of units), where Pdesktop is the price of a desktop system and M is consumer Income. The same article reported that the incomes of the desktop system's primary consumer demographic would increase 4.2 percent this year to $61,300 and that the selling price of a desktop would decrease to $980, both of which the CEO viewed favorably for Viking. In a related article, the CEO read that the upcoming year's projected demand for 32 GB desktop memory modules is: admemory = 1,200 - 100Pmemory - 2Pdesktop (n thousands of units), where Pmemory is the market price for a 32 GB memory module and Pdesktop is the selling price of a desktop system. The report also indicated that five new, small start-ups entered the 32 GB memory module market bringing the total number of competitors to 100 firms. Furthermore, suppose that Viking's CEO commissioned an industry-wide study to examine the industry capacity for 32 GB memory modules. The results indicate that when the Industry is operating at maximum efficiency, this competitive Industry supplies modules according to the following function: Osmemory = 1000 + 25Pmemory * N where Pmemory is the price of a 32 GB memory module and N is the number of memory module manufacturers in the market. Viking's CEO provides you, the production manager, with the above information and requests a report containing the market price for memory modules and the number of units to manufacture in the upcoming year based on the assumption that all firms producing 32 GB modules supply an equal share to the market. Instructions: Enter your responses rounded to two decimal places. Market price for memory moduies: $ 65.12 Number of units to manufacture: 2728 thousand How would your report change if the price of desktops were $1,080? Market price for memory modules: $ 63.52 Number of units to manufacture: 2,688 thousand
Viking InterWorks is one of many manufacturers that supplies memory products to original equipment manufacturers (OEMS) of desktop systems. The CEO recently read an article in a trade publication that reported the projected demand for desktop systems to be: addesktop = 1600 – 2Pdesktop + 0.6M (in millons of units), where Pdesktop is the price of a desktop system and M is consumer Income. The same article reported that the incomes of the desktop system's primary consumer demographic would increase 4.2 percent this year to $61,300 and that the selling price of a desktop would decrease to $980, both of which the CEO viewed favorably for Viking. In a related article, the CEO read that the upcoming year's projected demand for 32 GB desktop memory modules is: admemory = 1,200 - 100Pmemory - 2Pdesktop (n thousands of units), where Pmemory is the market price for a 32 GB memory module and Pdesktop is the selling price of a desktop system. The report also indicated that five new, small start-ups entered the 32 GB memory module market bringing the total number of competitors to 100 firms. Furthermore, suppose that Viking's CEO commissioned an industry-wide study to examine the industry capacity for 32 GB memory modules. The results indicate that when the Industry is operating at maximum efficiency, this competitive Industry supplies modules according to the following function: Osmemory = 1000 + 25Pmemory * N where Pmemory is the price of a 32 GB memory module and N is the number of memory module manufacturers in the market. Viking's CEO provides you, the production manager, with the above information and requests a report containing the market price for memory modules and the number of units to manufacture in the upcoming year based on the assumption that all firms producing 32 GB modules supply an equal share to the market. Instructions: Enter your responses rounded to two decimal places. Market price for memory moduies: $ 65.12 Number of units to manufacture: 2728 thousand How would your report change if the price of desktops were $1,080? Market price for memory modules: $ 63.52 Number of units to manufacture: 2,688 thousand
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Viking InterWorks is one of many manufacturers that supplies memory products to original equipment manufacturers (OEMS) of
desktop systems. The CEO recently read an article in a trade publication that reported the projected demand for desktop systems to
be:
addesktop = 1600 – 2Pdesktop + 0.6M (in millons of units), where Pdesktop is the price of a desktop system and M is consumer
Income.
The same article reported that the incomes of the desktop system's primary consumer demographic would increase 4.2 percent this
year to $61,300 and that the selling price of a desktop would decrease to $980, both of which the CEO viewed favorably for Viking. In
a related article, the CEO read that the upcoming year's projected demand for 32 GB desktop memory modules is:
admemory = 1,200 - 100Pmemory - 2Pdesktop (n thousands of units), where Pmemory is the market price for a 32 GB memory
module and Pdesktop is the selling price of a desktop system.
The report also indicated that five new, small start-ups entered the 32 GB memory module market bringing the total number of
competitors to 100 firms. Furthermore, suppose that Viking's CEO commissioned an industry-wide study to examine the industry
capacity for 32 GB memory modules. The results indicate that when the Industry is operating at maximum efficiency, this competitive
Industry supplies modules according to the following function:
Osmemory = 1000 + 25Pmemory * N where Pmemory is the price of a 32 GB memory module and N is the number of memory module
manufacturers in the market.
Viking's CEO provides you, the production manager, with the above information and requests a report containing the market price for
memory modules and the number of units to manufacture in the upcoming year based on the assumption that all firms producing 32
GB modules supply an equal share to the market.
Instructions: Enter your responses rounded to two decimal places.
Market price for memory moduies: $ 65.12
Number of units to manufacture: 2728
thousand
How would your report change if the price of desktops were $1,080?
Market price for memory modules: $ 63.52
Number of units to manufacture: 2,688
thousand
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