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 9, Problem 1.5CE
To determine
To find:Average operating expenditures per student are minimized.
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PLEASE ANSWER D
Your software company recently instituted a highly regarded training program for newly hired software developers. The benefits of this program include not only the benefits to employees, but also the goodwill generated by an increase in your reputationamong customers and professional groups. The costs of this training program include all of the labor, space, and consultants necessary. Suppose these benefits and costs are given by B(Q) = 100Q − 2Q2 and C(Q) = 10Q, where Q represents the amount of hours each software developer should spend in training. (Note that MB = 100 − 4Q, MC = 10, and also that time can be measured in fractions of one hour.)
a. What level of Q maximizes the total benefits of your newly introduced training program?b. What level of Q minimizes the total costs of the program?c. What level of Q maximizes the net benefits?d. What level of training is optimal? Why?
Why is cost-minimization analysis most likely to be useful for managers?
The profit from the supply of a certain commodity is modeled as
P(q) = 71ge-0.29 dollars
where q is the number of units produced. 0 ≤ q ≤ 100
(a) Write an expression for the rate of change of profit. (Be sure to use q as the independent variable.)
P'(q)
dollars per unit
(b) At what production level in the domain 0 ≤ q ≤ 100 is the rate of change of profit zero? (Round your answer to the nearest whole number.)
q=
units
(c) What is profit at the production level found in part (b)? (Round your answer to two decimal places.)
Chapter 9 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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