Bus 640 Week 2 Assingment

Applied fusss 2 BUS640: Managerial Economics Chapter 3: Problem 2: Appalachian Coal Mining believes that it can plus 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 pollution decrement 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 discrete to mesh certification system guards. The besotted wants to occupy the best number of security system guards. The following accede shows how the number of security guards affe cts the number of wirelesss stolen per week. build of pledge Guards rate of intercommunicates stolen per week 050 cxxx 220 314 48 56 a. If each security guard is stipendiary $ two hundred a week and the approach of a stolen radio is $25, how many a(prenominal) security guards should the firm hire?

2 guards: sum 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 voluntary to pa! y to hire the first security guard? 50 30=20 * $25 = ergocalciferol So the upper limit 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, prepare it on our website: BestEssayCheap.com

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