Q-1Nintendo, a leading manufacturer of video games is about to introduce four new games. The accompanying table summarizes price and cost data. Combined fixed costs equal $500,000. Game-1Game-2Game-3Game-4Selling price$50$45$30$20Variable cost per unit$20$15$10$10Determine a joint total revenue function for sales of the video games.Determine a joint total cost function for the development of video games.Determine the profit function for sales of the video games.What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games?

The factors of production are the elements employed in the production process by the enterprise in…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Nintendo, a leading manufacturer of video games is about to introduce four new games. The accompanying table summarizes price and cost data. Combined fixed costs equal $500,000.

	Game-1	Game-2	Game-3	Game-4
Selling price	$50	$45	$30	$20
Variable cost per unit	$20	$15	$10	$10

Determine a joint total revenue function for sales of the video games.
Determine a joint total cost function for the development of video games.
Determine the profit function for sales of the video games.
What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games?

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