The Zinger Company Manufactures and Sells a Line of Sewing

question 11

Essay

The Zinger Company manufactures and sells a line of sewing machines.Demand per period (Q)for a particular model is given by the following relationship:
Q = 400 - .5P
where P is price.Total costs (including a "normal" return to the owners)of producing Q units per period are:

TC = 20,000 + 50Q + 3Q²
(a) Express total profits (π) in terms of Q.
(b) At what level of output are total profits maximized? What price will be charged? What are total profits at this output level?
(c) What model of market pricing has been assumed in this problem? Justify your answer.

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Definitions:

Regulate

The act of controlling or maintaining the rate or speed of a process or system, often to achieve stability or to meet certain criteria.

Adjusting

Adjusting entails modifying or altering behaviors, strategies, or attitudes to better fit new conditions or to achieve a desired outcome.

Kindergarten

A preschool educational approach that emphasizes play, physical activity, creativity, and socialization to foster children's growth and development.

Psychosexual Feelings

Emotions and attachments related to the erotic desire and experiences as conceptualized in psychoanalytic theory.