1-Redo Problem 12.21 by maximizing utility u = x05y0.3 subject to the budget constraint 10x +3y = 140. 2-Minimize a firm's total costs c = 45x + 90xy + 90y² when the firm has to meet a production quota g equal to 2r + 3y = 60 by (a) finding the critical values and (b) using the bordered Hessian to test the sccond-order conditions.

1-Redo Problem 12.21 by maximizing utility u = x05y0.3 subject to the budget constraint 10x +3y = 140. 2-Minimize a firm's total costs c = 45x + 90xy + 90y² when the firm has to meet a production quota g equal to 2r + 3y = 60 by (a) finding the critical values and (b) using the bordered Hessian to test the sccond-order conditions.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 4E

See similar textbooks

Similar questions

It is known that a certain company sells each kg of the product it manufactures at $80, it is also known that the total manufacturing cost "CT" is given by the function CT=(1/1000)x2 +100 , where "x" are the kg of product produced. a) How many units of "x" must the company sell to break even? Value = 100 points.b) How many units of "x" is the optimal quantity that should be sold to optimize the producer's profit? Value = 100 points.c) How many monetary units does that optimal profit for producers amount to? (remember, you will have to prove it mathematically either by the method of the first or by the method of the second derivative). Value = 100 points.
A large company in the communication and publishing industry hs quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.01 xDemand for an annual printing of this particular product. The foxed costs per year (ie. per printing) = $4T 000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 7,000 units per year. The maximum profit that can be achieved is S. (Round to the nearest dolar.) The unit price at the point of optimal demand is S per unit (Round to the nearest cent)
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.02 × Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing) = $51,000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $144,313. (Round to the nearest dollar.) The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.)
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150 − 0.01 × Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing) = $50,000 and the variable cost per unit = $40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 6,000 units per year.
The soft goods department of a large department store sells 184 units per month of a certain large bath towel. The unit purchase cost of a towel to the store is $2.5 and the cost of placing an order has been estimated to be $11. The store's inventory carrying cost is 33% of the purchase cost of the goods. Suppose that the demand rate is a constant and the EOQ model is used. What is the optimal annual cost of placing orders and holding inventory?
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150 - 0.02 x Demand for an annual printing of this particular product. The fixed costs per year (ie., per printing) = $46,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 3,000 units per year. The maximum profit that can be achieved is $. (Round to the nearest dollar.) The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.) Enter your answer in each of the answer boxes.
A company estimated that the relationship between the unit price and demand per month for a potential new product is approximated by P = $ 100 – $ 0.1D. The company can produce the product by increasing fixed costs $ 17,500 per month, and the estimated variable costs is $ 40 per unit. What is the optimal demand, D*, and based on this demand, should the company produce new product? Why? a) Work out the complete solution by differential calculus, starting with formula for profit or loss per month b) Solve graphically for an approximate answer
Thranduil company’s market research department is working on the pricing of a product. The field research shows that average demand is expected to be 8000 units at price 50 TL. From this point, each 1 TL change in price will negatively affect demand with a magnitude of 100 units. Fixed and variable costs are confronted for producing the product. According to the information obtained from the financial department, 200,000 TL is the estimate of fixed costs and 20 TL is the estimate of variable costs per unit produced. Assume that all units produced are sold.Which of the following prices is the one that maximizes the company's profit?
For a particular jacket that is ordered for the Holidays, the Variable Cost = $150 and the jacket will be priced for sale at $250. It is estimated that the Average Demand will be 5000 units. If the jacket does not sell at the retail price during the Holidays time period, then it will be sold to an overstock discounter for $30. Given the relationship between Optimal Quantity and Average Demand, should the Optimal Quantity for this jacket be:
A manufacturer sells two related products, the demand for which is characterized by the following two demand functions: q1 = f1 (p1, p2) = 200 – 6p1 – p2 q2 = f2 (p1, p2) = 150 – p1 – 4p2 where pj equals price (in dollars) of product j and qj equals the demand (in thousands of units) product j. (a) How many units are expected to be demanded of each product if $18/unit is charged for product 1 and $36/unit is charged for product 2? (b) How many units are expected if the units price are $40 and $30, respectively?
From a certain place K, 2000 people set off for work in the distant place S in the morning by car. Each of the drivers must decide whether to come to place S via point G or via point D (see the directed graph below). The travel time on segments G-S and K-D is not dependent on the number of drivers: each driver traverses the G-S segment in 60 minutes, and the K-D segment in 45 minutes, regardless of the number of drivers. However, the travel time on segments K-G and D-S depends on the number of drivers: if x drivers travel on the K-G segment, each driver on this segment consumes 0.005x minutes; if x drivers travel on the D-S segment, each driver on this segment consumes 0.01x minutes (see the directed graph below). Assume that all people start simultaneously and do not know the decisions of other people. Find all pure Nash equilibria of the game.
Thranduil company's market research department is working on the pricing of a product. The field research shows that average demand is expected to be 8000 units at price 50 TL. From this point, each 1 TL change in price will negatively affect demand with a magnitude of 100 units. Fixed and variable costs are confronted for producing the product. According to the information obtained from the financial department, 200,000 TL is the estimate of fixed costsand 20 TL is the estimate of variable costs per unit produced. Assume that all units produced are sold. Which revenue equation (R(p)) is given correctly? O R(p) = (8000 + 5000)p – 100p? O R(p) (8000 100p) * p O R(p) (50 - p) * 8000 20p OR(p) 100p? – 20p – 200.000 O R(p) 8000p * 50 - 100 20 p likle: >809A)