Managerial Economics

(Economyst Only Please):
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?


  1. 👍 0
  2. 👎 0
  3. 👁 272
  1. I dont know

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Operations Management 10th edition

    The three station work cell illustrated in Figure S7.7, has a product that must go through one of the two machines at station 1 (they are parallel) before proceeding to station 2. Station 1-Machine A-Capacity: 20 units/hr Station

    asked by Shelley on April 25, 2012
  2. Math

    You’re involved in the design of a new facility. It is important for people to move between work stations quickly. Based on the figure below, how many feet would a person need to walk to get from Work Station 1 to Work Station

    asked by Tammie on September 9, 2016
  3. Math

    A real estate salesperson bought promotional calendars and date books to give to her customers at the end of the year. The calendars cost $0.75 each, and the date books cost $0.40 each. She ordered a total of 600 promotional items

    asked by Jameson on September 8, 2013
  4. Math

    A canadian television station shows 16 mins of commercials every hour between 8am and 11pm everyday. How many minutes of commercials are there on the station between 8 am and 11 pm in 365 days?

    asked by Mike on May 12, 2017
  5. Math Data management

    A survey of 1000 television viewers conducted by a local television station produced the following data: •40% watch the news at 12:00 •60% watch the news at 18:00 •50% watch the news at 23:00 •25% watch the news at 12:00

    asked by Rania on January 19, 2011
  1. Language Art's

    1.)What is Robert MacNeil's main point in "The Trouble With Television" A.)News should not be shown on television B.)Commercials are modern art forms C.)People should watch less television D.)There should be more long television

    asked by YRN DJ on November 10, 2015
  2. Math

    Winnie can use up to 10 coupons when buying a box of DVDs. Each coupon is worth $3. She bought a box of DVDs for $56 less the value of her coupons. a)choose a variable to represent the number of coupons. b)Write an Algebraic

    asked by HI on May 15, 2013
  3. statistics

    A scatter plot would be useful for A. Showing the relative number of sales of four different brands of blank DVDs B. Showing the trend of sales, over time, of five different brands of blank DVDs C. Showing the relationship between

    asked by RGCLARK on February 24, 2012
  4. Math

    A Canadian television station shows 16 minutes of commercials every hour between 8 am and 11 pm everyday. How many minutes of commercials are there on the station between 8 am and 11 pm in 365 days?

    asked by Layla on May 8, 2015
  5. English

    What is the main point MacNeil is making in “The Trouble with Television”? A. Television makes people less able to focus on anything worthwhile. B. Escapist entertainment helps relieve the stress of modern life. C. Television

    asked by Anonymous on October 30, 2018
  6. Algebra

    Natalie earns $2.50 for each CD she sells and $3.50 for each DVD she sells. Natalie sold 45 DVDs last year. She earned a total of $780 last year selling CDs and DVDs. Write an equation that can be used to determine the number of

    asked by Sylvie on February 16, 2013

You can view more similar questions or ask a new question.