ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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You should create a spreadsheet to answer
this and the following six questions. Your U.S.
based company exports drendles to the rest
of the world. The world market for drendles is
highly competitive (so competitive that
changes in production in the United States do
not impact the world price). The current price
of a drendle is €100/drendle. Your company's
cost function is C(q)=50,000 + 50q +0.02q2 in
U.S. dollars. If the exchange rate is 1.20$/€.
How much profit (in $US) does your firm
make? Round your answer to the nearest
penny. Numeric Response
If the exchange rate is 1.172$/€. How much
profit (in $US) does your firm make?
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Transcribed Image Text:You should create a spreadsheet to answer this and the following six questions. Your U.S. based company exports drendles to the rest of the world. The world market for drendles is highly competitive (so competitive that changes in production in the United States do not impact the world price). The current price of a drendle is €100/drendle. Your company's cost function is C(q)=50,000 + 50q +0.02q2 in U.S. dollars. If the exchange rate is 1.20$/€. How much profit (in $US) does your firm make? Round your answer to the nearest penny. Numeric Response If the exchange rate is 1.172$/€. How much profit (in $US) does your firm make?
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