Scribd Logo
Upload

Welcome to Scribd!

  • Heat Co.

    Uploaded by

    Sarmad Sadiq E4 42
    5 views2 pages
    The document summarizes the production of a company's 100th unit of a product. It shows that the marginal cost is $51.16937 per unit. By setting marginal revenue equal to marginal cost and solving the equation P=750-0.015q, it determines that the company will produce its 100th unit at a price of $400 and a quantity of 23333 units. The document also briefly defines a price skimming strategy of starting with high prices that decrease over time as more units are produced.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document summarizes the production of a company's 100th unit of a product. It shows that the marginal cost is $51.16937 per unit. By setting marginal revenue equal to marginal cost and solving the equation P=750-0.015q, it determines that the company will produce its 100th unit at a price of $400 and a quantity of 23333 units. The document also briefly defines a price skimming strategy of starting with high prices that decrease over time as more units are produced.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views2 pages

    Heat Co.

    Uploaded by

    Sarmad Sadiq E4 42
    The document summarizes the production of a company's 100th unit of a product. It shows that the marginal cost is $51.16937 per unit. By setting marginal revenue equal to marginal cost and solving the equation P=750-0.015q, it determines that the company will produce its 100th unit at a price of $400 and a quantity of 23333 units. The document also briefly defines a price skimming strategy of starting with high prices that decrease over time as more units are produced.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    HEAT COMPANY Time for 100th Unit

    (a)
    P=a-bq y
    P=750-0.015q y

    (b)
    d.mat 42 Units
    lab 9.169367 99
    Marg cost 51.16937 100
    100th Unit
    (c)
    MR=MC
    a-2bq=51.16837 P=a-bq
    750-2(0.015)q=51.16937 P=750-0.015(23333)
    q=23333 Units P=400

    (d)Price skimming is a strategy in which we charge higher selling price at product launch but as the
    Time for 100th Unit

    1.06679570631828
    1.0675894575562

    Avg time/Unit Total time


    1.06679570632 105.613
    1.06758945756 106.759
    100th Unit 1.14617

    P=750-0.015(23333)

    roduct launch but as the product proceeds we charge lower selling price.

    You might also like