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 7, Problem 4E
To determine
To ascertain the optimal crew size.
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R(p) = pN(p).|
Bob is currently selling tires for 60 dollars each. His weekly sales are running at 130 tires per week, so
N(60) = 130.
His marketing department estimates that he will lose 2 sales per week for each 10 dollar increase in unit price, so
N'(60) = -0.2.
Estimate Bob's increase in weekly revenue for each one dollar increase in tire price.
Revenue increase =1
dollars
From a certain place K, 2000 people set off for work in the distant place S in the morning by car. Each of the drivers must decide whether to come to place S via point G or via point D (see the directed graph below). The travel time on segments G-S and K-D is not dependent on the number of drivers: each driver traverses the G-S segment in 60 minutes, and the K-D segment in 45 minutes, regardless of the number of drivers. However, the travel time on segments K-G and D-S depends on the number of drivers: if x drivers travel on the K-G segment, each driver on this segment consumes 0.005x minutes; if x drivers travel on the D-S segment, each driver on this segment consumes 0.01x minutes (see the directed graph below). Assume that all people start simultaneously and do not know the decisions of other people. Find all pure Nash equilibria of the game.
An exporter of handbags has just entered a new market. This exporter faces the following relationship between the price of
handbags and the demand for them:
P=15+
4.800
D
2.500
D²
, D>0
where P is the price per unit and D is the demand per month. The exporter wants to maximize his profit. The fixed cost is $2055 per
month and the variable cost #33 per unit. How many handbags should be produced and sold each month, in order to maximize
profit?
Round your answer to 0 decimal places.
Chapter 7 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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