Bus 640 Week 2 Assingment

Applied businesss 2 BUS640: Managerial Economics Chapter 3: Problem 2: Appalachian Coal Mining believes that it can append labor productivity and, there- fore, net revenue by cut back air defilement in its mines. It estimates that the bare(a) toll function for reducing taint by installing additional capital equipment is MC = 40P where P represents a decrement of one unit of befoulment in the mines. It also feels that for every unit of pollution reduction 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 discovered a theft occupation at its warehouse and has fixed to mesh certification system guards. The besotted wants to occupy the best number of certificate guards. The following accede shows how the number of security guards affects the number of wirelesss stolen per week. build of certificate Guards rate of radios stolen per week 050 cxxx 220 314 48 56 a. If each security guard is salaried $cc a week and the personify of a stolen radio is $25, how galore(postnominal) security guards should the firm hire?

2 guards: crook 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 th e firm would be voluntary to pay to hire th! e first security guard? 50 30=20 * $25 = ergocalciferol So the upper limit 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, grade it on our website: BestEssayCheap.com

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