as tool for optimizing profits, and with the input from the board of advisors decided to allocate funds to advertising, technology, and other ventures. (University of Phoenix, 2008) Through the course of this paper, a solution will be created using strategic variables, in order to sustain the economic profits that the firm can earn. This paper will also look to identify pricing and non-pricing strategies that will further facilitate the goal of maintaining economic profits. Finally, this paper will
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Solutions to Chapter 2 Problems A Note To Instructors: Because of volatile energy prices in today's world, the instructor is encouraged to vary energy prices in affected problems (e.g. the price of a gallon of gasoline) plus and minus 50 percent and ask students to determine whether this range of prices changes the recommendation in the problem. This should make for stimulating inclass discussion of the results. 2-1 The total mileage driven would have to be specified (assumed) in addition
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Maximum profit. A chain store manager has been told by the main office that daily profit, P, is related to the number of clerks working that day, x, according to the function P = −25x2 + 300x. What number of clerks will maximize the profit, and what is the maximum possible profit? In order to find the maximum profit and the number of clerks I will first have to find the value of x which will give me the axis and vertex. I will use the formula x=-b/(2a) to solve my quadratic equation. First the
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is $900. a. Compute the profit-maximizing price and output levels assuming Pear acts as a monopolist for its product. Answer: The monopolist would equate marginal revenue (MR) with marginal cost (MC) Total revenue (TR) = P*Q = 2500Q-Q^2 MR = dTR/dQ = 2500-2Q We have MC = 900 So MR= MC implies 2500-2Q= 900, implies monopoly output Q* = 800 (in units of 100) And monopoly price P = 2500-0.0005*800 = 2499.6 b. Determine the total contribution to profits and fixed costs from the solution
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Preface Here are my online notes for my Calculus I course that I teach here at Lamar University. Despite the fact that these are my “class notes”, they should be accessible to anyone wanting to learn Calculus I or needing a refresher in some of the early topics in calculus. I’ve tried to make these notes as self contained as possible and so all the information needed to read through them is either from an Algebra or Trig class or contained in other sections of the notes. Here are a couple of warnings
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expense should be eliminated, as this is an irrelevant cost that CYSL cannot avoid by cancelling the tournament. Subtracting these costs lets CYSL generate a profit of $6,502.00 (Exhibit 2A). Therefore we recommend that the Craddock Cup be continued. By expanding the tournament to include 32 more teams, CYSL will see an increase in their profits of $2,572 (Exhibit 3A). In order to breakeven with the increases in marketing and advertising, college recruiters and 20 additional face books, the new registration
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BENEDICTINE COLLEGE Managerial Economics Instructor: Shu Yan Fei Assignment One Student Name: Peng TangBin October 9, 2009 The demand curve for product X is given as Q = 2000 – 20P. a. How many units will be sold at $ 10 ? b. At what price would 2,000 units be sold ? 0 units ? 1,500? c. Write equations for total revenue and marginal revenue (in term of Q). d. What will be the total revenue at a price of $70? What will be the marginal revenue ? e. What is the point elasticity
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the new product is likely to appeal to persons who make over $50K a year. This report documents the data mining processes (using the data mining tool Weka) involved in exploring several models, and choosing one that will likely produce the largest profit within the budgetary constraint ($ 12,000) for the mass mailing campaign. 2. Problem Definition 2.1 Objective The aim of this data mining project is to test the provided demographic data sets with several models on Weka, and select a single model
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the total expense, which includes the city field rental for $1,200 Rivaldo’s salary of $6,300, and rent expense of $2,700, these costs will be incurred whether CYSL drops or keeps the Craddock cup. As a result, Craddock Cup generates an incremental profit of $6,502. Craddock Cup will generate an additional $10,132 by adding 32 more teams to the tournament. Most sources of revenues will double except for contributions for a total of $85,680. Relevant expenses such as registration with state
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Total Cost for 20 years is 100x + 20x =120x The demand curve therefore is r=70-0.001s Total Revenue within 20 years is 20rs – 1200s -0.02s2 Profit =(1200s-0.02s2)-120s = 1080s – 0.02s2 The maximum amount of profit is ds = 0 1080-0.04s = 0 s=1080*0.04=27,000 sq.m Case 2: Demand Curve is r= 60-0.002s The Total revenue for 20 years is 1000s – 0.002s2 Profit = (2000s – 0.04s2)-140s – 88s – 0.04s2 The optimal size of the shopping center is based on the revenue obtained and the utility obtained The
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