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Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
Edition 6ISBN: 978-0073523149Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
Edition 6ISBN: 978-0073523149 Exercise 37
ANALYZING MANAGERIAL DECISIONS: Demand Curve for an Electronics Product
You work for a company in India that manufactures and exports batteries and other charge storage devices. You are the sales manager for a DC-DC converter that is used to step up or step down the voltage in various industrial applications. You currently price the product at 4,000 Indian Rupees (INR) and sell 100,000 units. You estimate that if you priced the product at 3,000 INR you would sell 150,000 units.
You think it is reasonable to assume that your demand curve is linear.
Is this price likely to be optimal from your firm's standpoint, which has profit maximization as a goal
You work for a company in India that manufactures and exports batteries and other charge storage devices. You are the sales manager for a DC-DC converter that is used to step up or step down the voltage in various industrial applications. You currently price the product at 4,000 Indian Rupees (INR) and sell 100,000 units. You estimate that if you priced the product at 3,000 INR you would sell 150,000 units.
You think it is reasonable to assume that your demand curve is linear.
Is this price likely to be optimal from your firm's standpoint, which has profit maximization as a goal
Explanation
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Verified
Profit maximization refers to the situat...
Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
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