Prepare a table that computes the profit-maximizing quantity/ Managerial Economics
1. High Tech, Inc., has strong patent protection on a particular type of computer chip. High Tech uses the chip for the internal production of PCs. It also sells the chip to other manu- facturers on the open market. Does High Tech necessarily want to charge the same price to both external and internal customers? Explain.
2. A firm has a demand curve: P = 50 – Q. Its total costs are TC = 110 + Q + 3Q 2
Prepare a table that computes the profit-maximizing quantity. What quantity minimizes average cost?
