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You are the manager of College Computers, a manufacturer of customized computers that meet the specifications requied by the local university.
You are the manager of College Computers, a manufacturer of customized computers that meet the specifications requied by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufactures online and through traditional retail outlets. To attract its large student clientale, College Computers runs a weekly ad in the student paper advertising its "free service after the sale" policy in an attempt to differentiate itself from competition. The weekly demand for computers produced by College Computers is given by Q= 1,000-P and its weekely cost of producing computers is C(Q)= 2,000 + Q2. If other firms in the industry sell PCs at $600, what price and quantity of computers should you produce to maximize your firm's profits? What long run adjustments should you anticiapte? Explain
