Assume That Turbo Is a Firm That Produces Two Kinds

question 41

Essay

Assume that Turbo is a firm that produces two kinds of flash-memory drives. Its deluxe model has the inverse demand equation: P_D = 70 - .05Q_D, where QD is the number of units sold per week. For its economy model, the price equation is: P_E = 30 - .05Q_E. Turbo's marginal cost is $10 per unit for either drive, and it produces both on a single assembly line that has a maximum capacity of 875 drives per week.
(a) Determine the profit-maximizing outputs and prices of the drives.
(b) Suppose demand for the economy drive increases to: PE = 50 – .04QE. What are the profit-maximizing outputs and prices of the drives?

---

Definitions:

Institutional Justice

Institutional justice refers to the fairness and equality upheld within the structures and systems of institutions, including laws, policies, and their implementation.

Equality

The state of being equal, especially in status, rights, and opportunities.

Least Advantaged

Referring to individuals or groups that are most disadvantaged or lacking in resources, opportunities, and support in a society.

Parties

Social gatherings of invited guests, typically involving eating, drinking, and entertainment; can also refer to political groups organized to gain authority within a government.