Q-1Nintendo, 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-1Game-2Game-3Game-4Selling price$50$45$30$20Variable cost per unit$20$15$10$10Determine a joint total revenue function for sales of the video games.Determine a joint total cost function for the development of video games.Determine the profit function for sales of the video games.What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games?

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Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

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Problem 7E

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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

Determine a joint total revenue function for sales of the video games.
Determine a joint total cost function for the development of video games.
Determine the profit function for sales of the video games.
What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games?

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