Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 14, Problem 10P
(a):
To determine
Conclusion based on the dominance.
(b):
To determine
Conclusion based on the satisficing.
(c):
To determine
Conclusion based on the disjunctive revolution.
(d):
To determine
Conclusion based on the lexicography.
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Rail Tours, Inc., sells packaged tours on rail lines, including gourmet meals and a reserved bed. The most popular tours are in the autumn, when foliage colors are at their peak. The overnight package for Saturday and Sunday morning are especially heavily booked. A market survey firm has just completed a study in which they conclude that if the package cost is $200 per couple, then Rail Tours can expect to sell 400 spaces on a typical Saturday. If the price is raised to $225, then unit sales will drop to 390. If the price is raised further to $250, unit sales drop to 380. a) From the data given, write down the demand equation and determine its intercepts. Are there any precautions needed when operating at the extreme ends of the demand curve?b) The survey firm also reports that if per capita income changes, Rail Tours can expect a large change in bookings. In particular, if per capita income falls by 1%, then bookings will tend to fall by about 2%. Are tour packages a normal good?…
A bakery is located just up the road from Jane’s home. On Saturday mornings, she, like many others, buys her bread there. Saturday morning, predictably, is the busiest time of the week for the store, which necessitates the hiring of additional employees.On weekdays, only one assistant provides services to the customers. But because of the busy scheduling on Saturdays, five assistants are brought in to assist. The problem is the additional five are not able to serve five times as many customers. Labour is faced with diminishing return and some factors of production in the bakery shop are fixed.The shop size is fixed. Saturday mornings at the shop is terrible for customers because of overcrowding. Assistants sometimes had to wait while customers squeezed past each other to get to the counter. The five assistants get in each other’s way as they try hard to reduce the pressure and run smooth services.The pay point is only one. Ordered delivery also wastesThe bread is very nice, and…
Chapter 14 Solutions
Engineering Economy (17th Edition)
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