# Managerial Economics

A television station is considering the sale of promotional DVDs. It can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of \$1200 plus \$2 for each DVD; supplier B has no set-up fee and will charge \$4 per DVD. The station estimates its demand for the DVDs to be given by Q = 1,600 - 200P, where P is the price in dollars and Q is the number of DVDs. The price equation is P = 8 -Q/200.

A. Suppose the station plans to give away the videos. How many DVDs should it order? From which supplier?

B. Suppose instead that the station seeks to maximize its profit from sales of DVDS. What price should be charged? How many DVD should it order from which supplier? Solve two separate problems, one with supplier A and one with supplier B, and then compare profits.

In each case apply the MR = MC rule.

I cannot get this set up to work the problem can you help me?

Thanks

1. I dont know

First Name

## Similar Questions

1. ### Managerial Economics

A television station is considering the sale of promotional DVDs. It can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of \$1200 plus \$2 for each DVD; supplier B has no set-up fee
2. ### Economics

A television station is considering the sale of promotional DVDs. It can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of \$1,200 plus \$2 for each DVDs; supplier B has no set-up fee
3. ### Economics

CCM television station is considering selling promotional videos produced by Firm A or Firm B. Firm A will charge the station a set up fee of \$1,200 plus \$2 for each cassette, while firm B has no set up fee and will charge \$4.00

Marcia collected a number of used DVDs for the sale. There were 12 action movies, 7 comedies, and 8 animated films. she decided to put them on sale at 3 for \$5. how many groups of 3 DVDs went on sale? How much money did they bring
5. ### Math

A DVD producer has fixed costs (factory, machinery, and money paid to the recording artist) of \$406,000. Additionally, for every DVD produced, the company spends \$5 for materials and labor. The DVDs can be sold for \$12 each. a)
6. ### math

amos has 12 action , 15 comedy,. and 9 drama dvds, find the ratio of action dvds to the total number of dvds.
7. ### English

But when television is bad, nothing is worse. I invite you to sit down in front of your television set when your station goes on the air and stay there without a book, magazine, newspaper, profit-and-loss sheet, or rating book to
8. ### Maths

DVDS 4 U SALE Price label more than £8-take 15% off Price label less than £8-take 10% off a)ivy buys 5 dvds with a price label of £6. work out how much she pays in the sale b)kurt buys 2 dvds each with a price label of £4 and
9. ### algebra

A store sold 60 DVDs. Some of these were on sale and sold for \$4.95 each, while the rest priced at \$5.95 each. If the sales receipts for DVDs at the end of the day totaled \$317.00, how many of each type were sold?
10. ### Math

I got an answer by trial and error but need to know how to set the problem up. Bob bought 10 movies for \$153. The DVDs were \$12 and the BluRays were \$23. How many of each did Bob buy? 7 DVDs and 12 BluRays. Thank you for help.

More Similar Questions