Nintendo, a leading manufacturer of video games is about to introduce four new games. The accompanying table summarizes price and cost data. Combined fixed costs equal $500,000.
Game-1 Game-2 Game-3 Game-4
Selling price $50 $45 $30 $20
Variable cost per unit $20 $15 $10 $10
a) Determine a joint total revenue function for sales of the video games.
b) Determine a joint total cost function for development of the video games.
c) Determine the profit function for sales of the video games.
d) What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games.
Answers
Answer:
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