You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after the sale policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q=1,200 - 5P, and its weekly cost of producing computers is C(Q)= 1,800 +2Q². If other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits? Instructions: Round your response to the nearest whole number. Quantity: computers Instructions: Round your response to the nearest penny (two decimal places). Price: $ What long-run adjustments should you anticipate? O Exit by other firms, increasing your profits. Entry by other firms, reducing your profits. O Exit by other firms along with decreased profits. O Entry by other firms along with increased profits.
You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after the sale policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q=1,200 - 5P, and its weekly cost of producing computers is C(Q)= 1,800 +2Q². If other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits? Instructions: Round your response to the nearest whole number. Quantity: computers Instructions: Round your response to the nearest penny (two decimal places). Price: $ What long-run adjustments should you anticipate? O Exit by other firms, increasing your profits. Entry by other firms, reducing your profits. O Exit by other firms along with decreased profits. O Entry by other firms along with increased profits.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Problem 08-16 (algo)
You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the
local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds
computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail
outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after
the sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College
Computers is given by Q=1,200 - 5P, and its weekly cost of producing computers is C(Q) = 1,800 +2Q².
If other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits?
Instructions: Round your response to the nearest whole number.
Quantity:
Instructions: Round your response to the nearest penny (two decimal places).
Price: $
computers
What long-run adjustments should you anticipate?
O Exit by other firms, increasing your profits.
O Entry by other firms, reducing your profits.
O Exit by other firms along with decreased profits.
O Entry by other firms along with increased profits.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 8 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education