Xerox Corporation develops manufactures, and services document equipment and software solutions worldwide. Assume the company offered $75 off the $1,475 regular price on the Phaser 6360, a durable high-speed color copier, and Internet sales jumped from 700 to 800 units per week (see http://www.office.xerox.com).
A. Estimate the color copier demand curve, assuming that it is linear.
B. If marginal costs per unit are $650, calculate the profit-maximizing price/output combination.