Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 6

Speed Company sells printers. It is divided into a manufacturing unit and a sales unit. The marginal cost of producing a printer is $200. External demand is given by P = 1000 -.01 Q. Selling and distribution costs total $150 per unit.
a. What is the profit maximizing retail price and quantity What are firm profits