2. What are your costs if you charge a price of $100? 3. What is your revenue if you charge a price of $95 for each calculator?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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A company produces a special new type of calculator. The company
projects that if it charges a price of $84 for the calculators, it will be
able to sell 1100 calculators. If the company wants to sell 1300
calculators, however, it must lower the price to $78. It costs $12 to
make each calculator and fixed costs are $33,000. Assume linear
demand.
Transcribed Image Text:A company produces a special new type of calculator. The company projects that if it charges a price of $84 for the calculators, it will be able to sell 1100 calculators. If the company wants to sell 1300 calculators, however, it must lower the price to $78. It costs $12 to make each calculator and fixed costs are $33,000. Assume linear demand.
2. What are your costs if you charge a price of $100?
3. What is your revenue if you charge a price of $95 for each
calculator?
Transcribed Image Text:2. What are your costs if you charge a price of $100? 3. What is your revenue if you charge a price of $95 for each calculator?
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