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The Pear Computer Company just developed a totally revolutio

Paper help Economics The Pear Computer Company just developed a totally revolutio

Economics

The Pear Computer Company just developed a totally revolutio

The Pear Computer Company just developed a totally revolutionary new personal computer. It estima… Show more The Pear Computer Company just developed a totally revolutionary new personal computer. It estimates that it will take competitors at least two years to produce equivalent products. The demand function for the computer is estimated to be P = 2,500 – 0.0005Q The marginal (and average variable) cost of producing the computer is $900. a. Compute the profit-maximizing price and output levels assuming Pear acts as a monopolist for its product. b. Determine the total contribution to profits and fixed costs from the solution generated in Part (a). • Show less

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