You are working for the chief economist at Microsoft. Microsoft’s only significant costs to producing and distributing a new version it it’s operating system is $30,000 in wages to its employees, $15,000 in computer testing, and $5,000 in utilities. Microsoft’s marketing department estimates that the demand a new version it it’s operating system is Q = 320 – 0.5 P, with P measured in dollars. What price should Microsoft charge for a new version it it’s operating system? What profit should Microsoft expect?
You are working for the chief economist at Microsoft. Microsoft’s only significant costs to producing and distributing a new version it it’s operating system is $30,000 in wages to its employees, $15,000 in computer testing, and $5,000 in utilities. Microsoft’s marketing department estimates that the demand a new version it it’s operating system is Q = 320 – 0.5 P, with P measured in dollars. What price should Microsoft charge for a new version it it’s operating system? What profit should Microsoft expect?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
You are working for the chief
economist at Microsoft. Microsoft’s only significant
costs to producing and distributing a new version it
it’s operating system is $30,000 in wages to its
employees, $15,000 in computer testing, and
$5,000 in utilities. Microsoft’s marketing department estimates that the
demand a new version it it’s operating system is Q = 320 – 0.5 P, with P
measured in dollars.
What
system? What profit should Microsoft expect?
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