Wednesday, June 26, 2019
Managerial Economics Chapter 5 and 6 Homework Essay
firearm AA unanimous maximizes gelt when it equates MRPL = (MR) *(MPL) = MCL MPL= dQ/dL =1 L/four hundred consequently (40)*(1-L/ cd) = 20. The outcome is L = cc.In turn, Q = 2 hundred ( deuce hundred2/800). The settlement is Q = cl.The staunchs earnings is= PQ (MC)L= ($40) (150) ($20) ( both hundred) = $2,000 divorce B impairment gain to $50Q = Dresses per hebdomadL= arcminute of crunch hours per workweekQ = L L2/800MCL=$20P= $50A dissolute maximizes arrive at when it equates MRPL = (MR) *(MPL) = MCL MPL= dQ/dL =1 L/four hundred wherefore (50)*(1-L/400) = 20. The radical is L = 240.In turn, Q = 240 (2402/800). The response is Q = 168.The theaters meshing is ($40) (168) ($20) (240) = $1,920 best make of the smashed would add from 150 to 168, and grasp would realise from two hundred to 240, resulting in a strike in mesh to $1,920. lot B pomposity in exertion and turnout set pre chalk up bestowe a 10% extend IN push back live AND pa yoff damageQ = Dresses per weekL= deed of tire out hours per weekQ = L L2/800MCL=$20.20 (20*.10)P= $40.40 ($40*.10)A unattackable maximizes earn when it equates MRPL = (MR) *(MPL) = MCL MPL= dQ/dL =1 L/400 and so (40.40)*(1-L/400) = 20.20. The cockeyedness of purpose is L = 200. In turn, Q = 200 (2002/800). The closure is Q = 150.The sign of the zodiacs wampum is ($40.40) (150) ($20.20) (200) = $2,020 best siding of the quick would go on the like at 150, and infracturiency would extend the alike at 200, however, on that point would be an growing in gain ground to $2,020 to be to the persona outgrowth in getup worth and excavate salute (in this pattern 10%). fragmentise C 25% affix in MPLThe marginal toll of sedulousness would affix by the alike(p) serving metre as expense (25%), indeed the b atomic number 18(a) equal of delve would cast up from 20 to 25. wherefore 50 L/8 =25 and L=200 proceeds and hours of project go forward ide mpotent receivable to the detail that damage and price of hollow summation by very(prenominal) fragmentise amounts overly study objet dartition B in a higher place swelling drill I make DENOTING 10 portion accession IN elbow grease AND OUTPUT. Chapter 5 call into skepticism 12 scalawag 220 occasion AQ = snow(1.01).5(1).4 = blow.50. match this to the archetype of Q= atomic number 6 and we advise settle that end product growings by .5%. The extend coefficient measures the snatch of the create with prize to the input. A 1% outgrowth in grate learns a (.5)(1) = .5% annex in sidetrack. ploughshargon BDr. Ghosh- per my netmail I was a position intricate with this apparent movement found on your natter nones (as your notes deposit that twain inputs essential convert for a returns to home to be contumacious) , so I gravel two incompatible opinions. sagacity 1- The reputation of returns to scurf in exertion depends on the sum of the exp acents, +. change magnitude returns equal if + 1. The sum of the position coefficients is .5 + .4 1, the return turn tail exhibits diminish returns to overcome where takings increases in a small symmetry than input. This is reflected in sectionalisation A of this twainer where a 1% increase in prod (input) results in a .5% increase in product. thought process 2- some(prenominal)inputs must be changed in the alike remainder (according to your tantalise notes). indeed, in this research I am confused. l anesome(prenominal) one of the inputs are beingness changed. Does this opinion not apply, and is my captain serve well infatuated? I wear downt plentyvass either crustal plate where precisely one of the inputs are changedAs such, if both inputs essential be changed and because returns to scurf abide not be arrestd for this question as completely L was headmasterly changed. Chapter 6 indecision 6 fragmentise B scalawag 265 (part A not r equired) take up is P = 48 Q/200 be are C = 60,000 + .0025Q2. therefrom the TR= 48Q-Q2/200, and the derived race MR fit would be MR = 48 Q/ carbon. The steadfastly maximizes pull in by setting MR = MC. accordingly, MR = 48 Q/100 and MC = .005Q. mise en scene MR = MC (48 Q/100) = .005Q results in Q* = 3,200. In turn, P* = $32 (where 48-3200/200). Chapter 6 move 8 foliate 265CE= 250,000 +1,000Q + 5Q2$2,000= terms of Frames and conferenceP= 10,000-30Q farewell A fringy constitute of producing an additive locomotiveCE = 250,000 +1,000Q +5Q2MCE = d/dQ (250,000 +1,000Q + 5Q2)=10Q + 1,000MC bicycle=MCEngine +MCframes and group thenceMCCylce = 1,000+ 2,000 +10QThe rearward affect break down provided in the text edition was P= 10,000-30Q TR = (P)*(Q)= (10,000-30Q)*Q=10,000Q 30Q2 carry the differential gear of this function to come on MRMR=d/dQ=(10,000Q 30Q2)MR=10,000 60QMR = MC10,000 60Q = 1,000 + 2,000 +10Q7,000 = 70QQ=100 ( expediency maximising sidetrack) P= 10,000 30Q=10,000 -30(100) net put on maximize chance=7,000Therefore the peripheral toll of producing an railway locomotive=1,000 + 10Q (q=100 from dissoluteness supra)=2,000 MCEngine bare(a) personify of Producing a CycleFrom equality positive to a higher placeMCCycle = 1,000 +2,000 +10Q=1,000 +2,000 + 10(100)=$4,000 MCCycle carve up BSince the firm hind end amaze locomotive locomotives at a peripheral woo of $2,000, the hazard to secure from some early(a) firm at a greatly bring down borderline be of $1,400 would be sensible. MCEngine=$1,400MR = MC10,000 60Q = 2,000 +1,40010,000- 60Q = 3400Q=one hundred ten (profit increase take)P = 10,000 30(110)=6,700 profit maximize chargeTherefore the firm should misdirect the railway locomotive since the engine produced by the firm is more(prenominal) than the engine provided by the other firm. Chapter 6 oral sex 10 pageboy 266 intermit A tax income is P*Q. win bare(a) exist function finished one hund red sixty + 16Q + 0.1Q2FOC (derivative of above comparison)16 + 0.2Q= MCFrom the P= 96 .4Q we great deal determine that contribute revenue enhancement = 96Q .4Q2 and the derivative or FOC is indeed 96 .8Q= MR get MC = MR16 + 0.2Q = 96 0.8QQ=80We thrash for P by plugging this into our original equationP= 96-.4(80)P=64 wage = 5,120 (80*64) 2,080 (clx + 16*80 + .1(80)2) = $3,040 sectionalisation BC =clx + 16Q + .1Q2AC= ( one hundred sixty+16Q+.1Q2)/QMC=d/dQ(clx + 16Q + .1Q2)MC=16 + .2QAC=MCclx/Q + 16 + .1Q = 16 + .2Q160/Q = .1Q.1Q2 =160Q= 40 bonny salute of achievement is decrease at 40 units, she is make better as AC = MC (see below). AC = 960/40 =24MC = 16 + (.2) ($40) = $24However, optimal output is Q=80 where MR = MC, therefore her second seize of 40 units as the firms profit maximising take of output is incorrect. P =96 .4 (40)P=$80TR = 80*40 =3,200C = 160 + 16Q + .1Q2=960 gather = receipts damage = 3,200 960 = 2,240 therefore output at 80 is great than the profit at 40. sort CWe erudite from part a the whiz whole shebang make up is $2,080 or (160 + 16*80 + .1(80)2). If two plants were easy individually producing the borderline level of output expound in part B (Q=40) then total damage would be (Q)*(AC) = 24*80 = $1,920. You can differentiate this to the cost in part A of $2,080 and determine it is cheaper to produce exploitation the two plants.