Suppose a farmer is a price takerfor soybean sales with cost functions given by thefollowing:TC = 0.197 +29 + 30MC = 0.2q+223. The firm's supply curve is given by? a) q = 5P-10b)9 = 0.2P+2c)9 = 10P-2d) q = 2P-524. IfP = 6, the profit - maximizing level of profits isA)$10b) $20. c)$30. d) - $10.

Part 2: ExplanationStep 1: Identify the given cost functions and price-taker condition- Total Cost…

Answered: Suppose a farmer is a price taker for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

See similar textbooks

Similar questions

A monopolist's total cost is TC = 4.5Q, where Q is output. Demand is Q = 10 - P , where P is price. When the monopolist chooses the profit maximizing Q*, the profit earned is
There are currently 60 perfectly competitive firms producing output q. Their cost function is C = 10 + 3q^2 he demand in this market is QD = 1200 - 40p. Each firm's variable profit is? Show graphically too! a) 48 b) 2880 c) 24 d) 240 e) 32
I need a detailed explanation on how to solve this problem: A bagel shop buys each bagel for $0.08 and sells each bagel for $0.35. Leftover bagels at the end of the day are purchased by a local soup kitchen for $0.03 per bagel. The shop’s owner has observed for the daily demand, Q, the following probabilities, f(Q): Q 0 5 10 15 20 25 30 35 f(Q) 0.05 0.10 0.10 0.20 0.25 0.15 0.10 0.05 - What is the optimal daily order in multiples of 5 (include the model name and formula)? - If the daily demand is normally distributed (the mean and variance can be obtained from the table above), then what is the optimal daily order?
- Consider demand: x(p₁) = 400 — 2p1 At a market price of p₁ = $125 per unit: • Determine the social loss due to moral hazard when assuming: 1. Full insurance compared to uninsured 2. A co-payment of $50 compared to uninsured 3. A 75% coinsurance rate compared to uninsured
The owner of a boat has estimated the following distribution of demand for a particular kind of boat. No. demanded o 1 2 3 Probability 0.10 0.20 0.30 0.40 Each boat costs him (c + d) rials and he sells them for (2 • c + 2 • d) rials each. Prices are given in hundreds rial units. Boats that are left unsold at the end of the season must be disposed off for (c + d – 2) rials each. How many should be stocked so as to maximize his expected profit?
A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit standard models. The concept being measured is "demand during lead time," where both lead time and daily demand are variable. The historical record for this product, along with the cumulative distribution, appear in the table. Demand During Lead Time Cumulaive Probability Probability 120 0.01 0.01 140 0.12 0.13 160 0.35 0.48 180 0.20 0.68 200 0.04 0.72 220 0.08 0.80 240 0.20 1.00 The following random numbers have been generated: 9, 78, 40, 41, and 99. (Note: Assume the random number interval begins at 01 and ends at 00.) Based on the given probabilty distribution, for the given random number the demand during the lead time is: Random Number 9 78 40 41 99 Demand The average demand during the lead time is (enter your response as an integer). The total demand during the lead time based on the five simulations is (enter your response as an integer).
2(a). A manufacturer of small garden tools has introduced a new product, a battery powered shrub/hedge trimmer. The anticipated demand is normally distributed with a mean of μ = 100 and a standard deviation of σ = 50. Each unit costs $75 to manufacture and the introductory price is to be $125. Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $25 each. It costs $10 to hold a unit in inventory for the entire season. What is the cost of overstocking? What is the cost of understocking? What is the optimal cycle service level? How many units should be manufactured for sale?
Suppose that the manager of a construction supply house determined from historical recordsthat demand for sand during lead time averages 50 tons. In addition, suppose the managerdetermined that demand during lead time could be described by a normal distribution thathas a mean of 50 tons and a standard deviation of 5 tons. Answer these questions, assumingthat the manager is willing to accept a stockout risk of no more than 3 percent:a. What value of z is appropriate?
Monsanto sells genetically modified seed to farmers. It needs to decide how much seed to put into a warehouse to serve demand for the next growing season. It will make one quantity decision. It costs Monsanto $8 to make each kilogram (kg) of seed. It sells each kg for $45. If it has more seed than demanded by the local farmers, the remaining seed is sent overseas. Unfortunately, it only earns $3 per kg from the overseas market (but this is better than destroying the seed because it cannot be stored until next year). If demand exceeds its quantity, then the sales are lost—the farmers go to another supplier. As a forecast for demand, it will use a normal distribution with a mean of 300,000 and a standard deviation of 100,000. Round your answer to 2 digits after the decimal point if it is not an integer. Do NOT use comma in your numeric answers. Use excel for accurate numbers. Don't round until the end. Monsanto’s maximum profit for this seed is $[xa]. The underage cost is $[xb]. The…
Consider a product for which the average demand is 70 items per day (for 365 days per year) and the standard deviation of demand is 10 per day. The product value is $3, the order cost is $30 per order, and the inventory carrying cost is 20% per year. The stockout cost is $0.50 per unit short. The probability of being in stock is to be 99%. The supplier has an average lead time of 5 days with a standard deviation of 1.5 days. a) Design a reorder point system using the 99% probability of being in stock and (i) state the policy (order size and when to order) and (ii) the total annual cost. Policy (order size and when to order): ____________________________________ Total annual cost = ________ b) If the product must be ordered in multiples of 500 items, design a reorder point system using the 99% probability of being in stock and (i) state the policy (order size and when to order), (ii) the total annual cost,…
What does the elasticity coefficient refer to? a Od It is the responsiveness of price to a change in quantity demanded It is price multiplied by the quantity of the product sold It indicates the responsiveness of quantity demanded to a change in price It is quantity demanded at any given price.
Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police Department. The quality of the test sets from her two suppliers is indicated in the following table: For example, the probability of getting a batch of tests that are 1% defective from Winter Park Technology is .70. Because Kellogg orders 10,000 tests per order, this would mean that there is a .70 probability of getting 100 defective tests out of the 10,000 tests if Winter Park Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $0.50. Although the quality of the test sets of the second supplier, Dayton Enterprises, is lower, it will sell an order of 10,000 test sets for $37 less than Winter Park. a) Develop a decision tree. b) Which supplier should Kellogg use?

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS