You Are the CEO of Comchip,a Monopoly That Sells Specialized

Essay

You are the CEO of Comchip,a monopoly that sells specialized computers.Each of the firm's computers contains a unique chip that is produced at Comchip's West Coast plant at a cost of C_w(Q_c)= Q_c².Once produced,the chips are shipped exclusively to the firm's East Coast plant.There,the computers are assembled,boxed,and shipped to the market at a cost of C_e(Q)= 200Q.An economic consultant recently estimated the demand for Comchip's computers and found it to be P = 5,000 - Q.Determine Comchip's optimal output and price for computers,and explain how it can induce plant managers to produce the required number of chips and computers.