Kal Tech Engineering Inc makes video games for "The Play Station." Variable costs are estimated at $20 per unit and fixed costs at $10,875. The price-demand relationship for this product is Q = 1,000 - 4P where “P” is the unit sales price of the game and “Q” is the demand in number of units. (a) Find the equilibrium quantity (or quantities). (b) What is the maximum possible income of the company? (c) What benefit would the company obtain by maximizing its total revenue? (d) What is the maximum possible profit of the company?

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a To find the equilibrium quantity we need to determine the point where the quantity demanded Q equa... View the full answer