The Locust Corporation is composed on a markedting division and a production division. The marginal cost of producing a unit of the firm s product is $10 per unit, and the marginal cost of marketing it is $4 per unit. The demand curve for the firm s product is:
P + 100 0.01Q
where P is the price per unit (in dollars) and Q is output (in units). There is no external market for the good made by the production division.
a. What is the firm s optimal output?
b. What price should the firm charge?
c. How much should the production division charge the marketing division for each unit of the product?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more