Bus 640 Week 2 Assingment

Applied problems 2 BUS640: Managerial Economics Chapter 3: Problem 2: Appalachian Coal Mining believes that it can summation labor productivity and, there- fore, net revenue by bring down air defilement in its mines. It estimates that the bare(a) toll function for minify taint by installing additional capital equipment is MC = 40P where P represents a decrement of one unit of defilement in the mines. It also feels that for every unit of contamination reducing the marginal increase in revenue (MR) is MR = 1,000 - 10P. How much pollution reduction should Appalachian Coal Mining undertake? MC = MR and drub for P. That is 40P = 1000-10P 40P+10P=1000 50P=1000 P=20 units. Chapter 3: Problem 4: 20 first Century Electronics has discover a theft occupation at its warehouse and has resolved to mesh certification system guards. The besotted wants to occupy the optimal number of certification guards. The following accede shows how the number of securi ty guards affects the number of wirelesss stolen per week. build of gage Guards rate of communicates stolen per week 050 one hundred thirty 220 314 48 56 a. If each security guard is pay $ two hundred a week and the salute of a stolen radio is $25, how many security guards should the firm hire?

2 guards: form of Security GuardsNumber of radios stolen per week 050(200 × 0) + (25×50)=1250 130(200 x 1) + (25 x 30) =950 220(200 x 2) + (25 x 20) = 900 314(200 x 3) + (25 x 14) = 950 48(200 × 4) +(25 × 8)=1000 56(200 x 5) + (25 x 6) =1150 b. If the cost of a stolen radio is $25, what is t he most the firm would be volition to pay t! o hire the first security guard? 50 30=20 * $25 = ergocalciferol So the maximal would be 500, anything over 500 would not be a benefit to the company. c. If each security guard is paid $200 a week and the cost of a stolen radio is $50, how many security guards should the firm hire? 3 guards Number of Security GuardsNumber of radios stolen per week 050...If you want to get a full essay, stray it on our website: BestEssayCheap.com

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