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#16 You are the manager of College Computers, a manufacturer of customized computers that
meet the specifications required 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 manufacturers online and
through traditional retail outlets. To attract its large student clientele, 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 the competition. The weekly demand for computers produced by College
Computers is given by 01,000 P, and its weekly cost of producing computers is C(O) 2,000 02.
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 anticipate?
Explain.

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