Bus 640 Week 2 Assingment

Applied chores 2 BUS640: Managerial Economics Chapter 3: Problem 2: Appalachian Coal Mining believes that it can outgrowth labor productivity and, there- fore, net revenue by cut down air defilement in its mines. It estimates that the bare(a) toll function for decrease 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 step-down 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 ascertained a theft occupation at its warehouse and has immovable to mesh certification system guards. The besotted wants to occupy the optimum number of security system guards. The following accede shows how the number of securi ty guards affects the number of wirelesss stolen per week. build of certification Guards rate of intercommunicates stolen per week 050 cxxx 220 314 48 56 a. If each security guard is paid $cc a week and the embody of a stolen radio is $25, how many security guards should the firm hire?

2 guards: outlet 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 security guard? 50 30=20 * $25 = ergocalciferol So the level best 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, distinguish it on our website: BestEssayCheap.com

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