War Game,Inc.produces games that simulate historical battles.The market is small but loyal,and War Game is the largest manufacturer.It is thinking about introducing a new game in honor of the sixtieth anniversary of the end of World War II.Based on historical data regarding sales,War Game management forecasts demand for this game to be P = 50 - 0.002Q,where Q denotes unit sales per year,and P denotes price in dollars.The cost of manufacturing (based on royalty payments to the designer of the game,and the costs of printing and distributing)is C = 140,000 + 10Q.
(a)If the goal of War Game is to maximize profit,calculate the optimal output and price.

Question

Quizplus · Accepted Answer

The Answer of War Game,Inc.produces games that simulate historical battles.The market is small but loyal,and War Game is the largest manufacturer.It is thinking about introducing a new game in honor of the sixtieth anniversary of the end of World War II.Based on historical data regarding sales,War Game management forecasts demand for this game to be P = 50 - 0.002Q,where Q denotes unit sales per year,and P denotes price in dollars.The cost of manufacturing (based on royalty payments to the designer of the game,and the costs of printing and distributing)is C = 140,000 + 10Q.
(a)If the goal of War Game is to maximize profit,calculate the optimal output and price.