Doorway Computers Manufactures PCs,and Also Produces the Special DVD Drives

question 39

Essay

Doorway Computers manufactures PCs,and also produces the special DVD drives that go into each PC.Demand for computers is estimated to be: P = 2,000 - 0.1Q,where Q denotes units sold per month,and P is the price of the PC.The firm's total cost is C = 40,000 + 800Q + CD,where CD denotes the firm's total cost of producing drives.Currently,CD = 100QD,that is,the firm's cost per drive is $100.
(a)If there is no external market for DVD drives,how many computers should Doorway produce and sell in order to maximize profit? What transfer price should the firm set for disk drives?

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Definitions:

Wages For Nurses

The monetary compensation paid to nursing professionals for their services, which can vary based on factors like experience, location, and specialization.

Resource Price

The cost associated with acquiring materials or inputs needed for production, including labor, capital, and natural resources.

Equilibrium

A condition in the market where the balance between supply and demand is achieved, resulting in steady prices.

Human Capital

The economic value of the abilities, skills, knowledge, and experience possessed by an individual or population.