War Game Inc produces games that simulate historical battles. The market is saml
ID: 1249999 • Letter: W
Question
War Game Inc produces games that simulate historical battles. The market is samll but loyal, and War Game is the largest manufacturer. It is thinking about introducing a new game in honor of the sixtieth anniversary of the outbreak of World War II. Based on historical data regarding sales, War Game management forecasts demand for this game to be P = 50 - .002Q, where Q denotes unit sales per year, and P denotes price in dollars. The cost of manufacture (based on royalty payments to the designer of the game, and the costs of printing and distributing) is C = 140,000 + 10Q.a. If the goal of War Game is to maximize profit, calculate the optimal output and price.
b. If instead the comany's goal is to maximize sales revenue, what is its optimal price and quantity?
Explanation / Answer
Well marketing definitely will be huge.
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