Question

I need help on some homework questions for an MBA-level Managerial Economics class. Here is the first question.

1. JALT, Inc. is a new firm offering investment consultant services to the rich. Harvey Milkemnow, having had experience in this area, is the potential new research manager. Milkemnow is personally obligated to render the service but insists on charging $4,000 per client per month. The fixed costs of running the operation are $3,000 per month and Milkemnow's fees are the only variable cost. JALT has determined that it has the following monthly demand schedule:

P = $5,000 - $40.00Q where
P is the price that clients pay monthly
Q is the number of clients

Should JALT, Inc. take up the venture?

Answer 1

see my answer to your other posting of this same question.