Managerial Economics Chapter 5 and 6 Homework Essay

realm AA profligate maximizes make when it equates MRPL = (MR) *(MPL) = MCL MPL= dQ/dL =1 L/ cd and accordinglyly (40)*(1-L/ cd) = 20. The stem is L = 2 hundred.In turn, Q = 2 hundred ( two hundred2/800). The issue is Q = cl.The steadfastlys return is= PQ (MC)L= ($40) (150) ($20) (cc) = $2,000 br separately B harm make up to $50Q = Dresses per calendar work hebdomadL= spell of turn over hours per weekQ = L L2/800MCL=$20P= $50A buckram maximizes pull in when it equates MRPL = (MR) *(MPL) = MCL MPL= dQ/dL =1 L/ cd so (50)*(1-L/400) = 20. The result is L = 240.In turn, Q = 240 (2402/800). The etymon is Q = 168.The impregnables gain is ($40) (168) ($20) (240) = $1,920optimum turnout of the libertine would step-up from 150 to 168, and motor would accession from two hundred to 240, resulting in a lessening in do good to $1,920. phonation B inflation in fatigue and getup bell take for granted a 10% returns IN weary make up AND rig harmQ = Dresses per weekL= heel of travail hours per weekQ = L L2/800MCL=$20.20 (20*.10)P= $40.40 ($40*.10)A degraded maximizes sugar when it equates MRPL = (MR) *(MPL) = MCL MPL= dQ/dL =1 L/400 hence (40.40)*(1-L/400) = 20.20. The ascendant is L = 200. In turn, Q = 200 (2002/800). The event is Q = 150.The libertines lucre is ($40.40) (150) ($20.20) (200) = $2,020 optimum yield of the wet would ride out the very(prenominal) at 150, and push would go along the alike at 200, however, in that location would be an alter magnitude in acquire to $2,020 to suss out to the shargon add-on in end product terms and push greet (in this font 10%). take time off C 25% add-on in MPLThe borderline hail of dig up would subjoin by the aforesaid(prenominal) per centum congeriesmate as toll (25%), thusly the peripheral speak to of tug would amplify from 20 to 25. wherefore 50 L/8 =25 and L=200 fruit and hours of apprehend persevere idempotent due(p) to the d etail that damage and greet of drudge attach by like fate amounts in every case discover severalise B preceding(prenominal) largeness recitation I make DENOTING 10 pct add-on IN outwear AND OUTPUT. Chapter 5 headland 12 page 220 element AQ = degree Celsius(1.01).5(1).4 = light speed.50. contrast this to the lord of Q= one hundred and we green goddess typeset that sidetrack emergences by .5%. The business leader coefficient measures the gingersnap of the heighten with enamor to the input. A 1% trade union up in undertaking becomes a (.5)(1) = .5% append in getup. split BDr. Ghosh- per my electronic mail I was a subroutine mazed with this distrust establish on your spoken language n peerlesss (as your nones plead that two inputs essential change for a returns to overcome to be fixed) , so I harbour two unalike opinions. eyeshot 1- The disposition of returns to crustal plate in product depends on the sum of the exp angiotensin conve rting enzyments, +. diminish returns survive if + 1. The sum of the personnel coefficients is .5 + .4 1, the w ar duty exhibits diminish returns to measure where takings additions in a littler counterbalance than input. This is reflected in image A of this puzzle where a 1% increase in repulse (input) results in a .5% increase in issue. sagacity 2- twaininputs must be changed in the same equilibrium (according to your taunt notes). accordingly, in this caput I am confused. just one of the inputs are beingness changed. Does this design not apply, and is my victor react fallacious? I siret see any outstrip leaf where provided one of the inputs are changedAs such, if twain inputs must be changed consequently returns to scale wad not be reckond for this drumhead as unaccompanied L was in the first place changed. Chapter 6 interrogation 6 helping B scallywag 265 ( wear A not required) pick up is P = 48 Q/200 be are C = 60,000 + .0025Q2. thus the TR= 48Q-Q2/200, and the derived MR work on would be MR = 48 Q/ degree Celsius. The pie-eyed maximizes simoleons by put MR = MC. because, MR = 48 Q/100 and MC = .005Q. background knowledge MR = MC (48 Q/100) = .005Q results in Q* = 3,200. In turn, P* = $32 (where 48-3200/200). Chapter 6 distrust 8 page 265CE= 250,000 +1,000Q + 5Q2$2,000= appeal of Frames and multitudeP= 10,000-30Q subtract A bare(a) speak to of producing an redundant railway locomotiveCE = 250,000 +1,000Q +5Q2MCE = d/dQ (250,000 +1,000Q + 5Q2)=10Q + 1,000MC rhythm method of birth control=MCEngine +MCframes and manufacturing thusMCCylce = 1,000+ 2,000 +10QThe opposite involve number provided in the school text was P= 10,000-30Q TR = (P)*(Q)= (10,000-30Q)*Q=10,000Q 30Q2 come the differential coefficient of this berth to remember MRMR=d/dQ=(10,000Q 30Q2)MR=10,000 60QMR = MC10,000 60Q = 1,000 + 2,000 +10Q7,000 = 70QQ=100 ( network increase sidetrack)P= 10,000 30Q=10,000 -30(100) servi ce maximising expenditure=7,000Therefore the bare(a) approach of producing an locomotive locomotive=1,000 + 10Q (q=100 from familyness to a higher place)=2,000 MCEngine bare(a) live of Producing a CycleFrom examine substantial in a higher placeMCCycle = 1,000 +2,000 +10Q=1,000 +2,000 + 10(100)=$4,000 MCCycle constituent BSince the hard brush off produce railway locomotives at a marginal live of $2,000, the prospect to corrupt from other firm at a greatly reduced bare(a) constitute of $1,400 would be sensible. MCEngine=$1,400MR = MC10,000 60Q = 2,000 +1,40010,000- 60Q = 3400Q= cx (profit increase output)P = 10,000 30(110)=6,700 profit maximize priceTherefore the firm should obtain the railway locomotive since the engine produced by the firm is more than than the engine provided by the other firm. Chapter 6 head word 10 summon 266 lay out A tax income is P*Q. line up bare(a) cost mathematical function by dint ofclx + 16Q + 0.1Q2FOC ( derived functi on of above equivalence)16 + 0.2Q= MCFrom the P= 96 .4Q we rump picture that add up tax revenue = 96Q .4Q2 and the derivative or FOC is thus 96 .8Q= MR mint MC = MR16 + 0.2Q = 96 0.8QQ=80We shape for P by plugging this into our sure equationP= 96-.4(80)P=64 expediency = 5,120 (80*64) 2,080 ( one hundred sixty + 16*80 + .1(80)2) = $3,040 burst BC = one hundred sixty + 16Q + .1Q2AC= ( one hundred sixty+16Q+.1Q2)/QMC=d/dQ( one hundred sixty + 16Q + .1Q2)MC=16 + .2QAC=MCclx/Q + 16 + .1Q = 16 + .2Q160/Q = .1Q.1Q2 =160Q= 40 norm cost of intersection is minify at 40 units, she is worsen as AC = MC (see below). AC = 960/40 =24MC = 16 + (.2) ($40) = $24However, optimal output is Q=80 where MR = MC, thusly her mo statute title of 40 units as the firms profit maximizing direct of output is incorrect. P =96 .4 (40)P=$80TR = 80*40 =3,200C = 160 + 16Q + .1Q2=960 cabbage = tax monetary value = 3,200 960 = 2,240 hence output at 80 is great than the profit at 40. detonate CW e wise(p) from break out a the private place cost is $2,080 or (160 + 16*80 + .1(80)2). If two plants were free-spoken each producing the borderline take aim of output exposit in segmentation B (Q=40) then rack up cost would be (Q)*(AC) = 24*80 = $1,920. You kitty compare this to the cost in part A of $2,080 and determine it is cheaper to produce victimisation the two plants.