Bus 640 Week 2 Assingment

Applied chores 2 BUS640: Managerial Economics Chapter 3: Problem 2: Appalachian Coal Mining believes that it can addition labor productivity and, there- fore, net revenue by simplification air defilement in its mines. It estimates that the bare(a) toll function for reducing taint by installing additional capital equipment is MC = 40P where P represents a decrement of one unit of taint in the mines. It also feels that for every unit of contaminant diminution 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 notice a theft occupation at its warehouse and has heady to mesh certification system guards. The besotted wants to occupy the optimal number of protection guards. The following accede shows how the number of security guards affects the number of wirelesss stolen per week. build of warrantor Guards rate of receiving sets stolen per week 050 cxxx 220 314 48 56 a. If each security guard is paid $ two hundred a week and the address of a stolen radio is $25, how more security guards should the firm hire?

2 guards: bout 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 the most the firm would be uncoerced to pay to hire the first secur! ity guard? 50 30=20 * $25 = ergocalciferol So the supreme 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, commit it on our website: OrderCustomPaper.com

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