Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 14, Problem 1.2CE
To determine
To evaluate the credible commitment about battery life and the durability of other related systems of C.
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In 2012-2015, the price of jet and diesel fuel used by air freight companies decreased dramatically. As CEO of FedEx, you have been presented with the following proposals below to deal with the situation. Evaluate these alternatives in the context of the decision-making model.
Make long-term contracts to buy jet fuel and diesel at a fixed price for the next two years and set shipping rates to a level that will cover these costs.
A manufacturer can produce at most 90 units of a certain product each year . The demand equation for the product is p= q2-100q+1800 and the manufacturer's average cost function c=2/3q2-55q+12000/q Determine the profit maximizing output q and the corresponding maximum Profit .
The profit maximizing output q is 60
Q1. Game console manufacturing determines that in order to sell Q units, the price per unit (in dollar) must decreased by the linear demand (the demand function)
P(Q)= 800- 0.3Q($/device)
The manufacturer also determine that the cost depends on the volume of production and includes a fixed part 500,000($) and a variable part 500Q , that is
C(Q)= 500000+ 500Q
What price per unit must be charged to get the maximum profit?
Chapter 14 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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