Marginal Cost and Marginal Revenue

Marginal Cost and Marginal Revenue

Part A

If the station plans to buy from supplier A then it will have to pay station fees of $1200 and $ 2 for each DVD brought from the supplier. Therefore it will have to order DVD's that are able to sell and generate revenue for the firm. The quantity needed will be:

Q = 1600 - 200P for supplier A P will be (1200 + 2)

thus the Q = 1600 - 200 (2) + 1200

Q = 1600 - 400 + 1200

Q = 2400

If the station plans to buy from supplier B then they ...