Suppose there is a depletable resource that has a stock-size of 28. The static Marginal Net Benefit in each period is 60 - 1.8q. The discount rate is 20% (r=0.2). The dynamic, efficient solution is for units to be extracted in period 1 and units to be extracted in period 2.
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- A company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month. 1) What is the company’s range of profitable output per year?In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $29 per doll. During the holiday selling season, FTC will sell the dolls for $37 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. Determine the equation for computing FTC's profit for given values of the…y1=100, y2=20 beta=0.5 and i=0% Calculate optimal saving s=______
- In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $34 per doll. During the holiday selling season, FTC will sell the dolls for $42 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. (a) Create a what-if spreadsheet model using a formula that relates the…ec8bbe18814005fde4649?start=true .2 Modeling with Linear Functions OPEN I am < Previous 3 attempts remaining. TAMU_QID: BM_0004c A company has fixed costs of $540 and can produce 20 items for a total cost of $1,380. The company then sells these items to the public for $72 each. Determine each of the following functions. Enter all answers below in slope-intercept form, using exact numbers. a. Find the company's linear cost function. C(z) = b. Find the company's linear profit function. P(z) = %3D Submit answer 456 PM 86°F Sunny 0006 9/13/2021PNG’s managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5000 and total variable costs are $4000, based on production of 400 units. The following values may be useful. 1n (0.2) = –1.609 1n (1.5) = 0.405 1n (0.5) = –0.693 1n (4000) = 8.294 1n (0.8) = –0.223 1n (5000) = 8.517 What is PNG’s price elasticity of demand? –0.252 +0.322 –3.973 +3.108
- Clark Company's master budget includes $348,000 for equipment depreciation. The master budget was prepared for an annual volume of 116,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September, Clark performed 8,500 chargeable hours and recorded $25,500 of depreciation. Required: 1. Determine the flexible-budget amount for equipment depreciation in September. 2. Compute the spending variance for the depreciation on equipment. Was the variance favorable (F) or unfavorable (U)? (Leave no cell blank; if there is no effect enter "O" and select "None" from dropdown.) 3. Calculate the fixed overhead production volume variance for depreciation expense in September. Was this variance favorable (F) or unfavorable (U)? (Leave no cell blank; if there is no effect enter "0" and select "None" from dropdown.) 1. Flexible-budget amount 2. 3. Production volume variance Spending variance equipment depreciationBack ECON2001 Graded Final Assessment (40%) Time left 0:46:19 Question 6 Answer saved Marked out of In trying to solve for the Cournot-Nash equilibrium, given (y) = R₁(y)=60-y and (y)=R₂(y) 45-, solve for y 2 4.00 PFlag question Previous page Answer: Next pageA company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate relationship between price and demand is p = 38+ (2,700/D) - (5000/D²) for D>1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units that should be produced and sold each month to maximize profit? A 71 B 60 с 50 D 25
- The CFO of Axis Manufacturing is evaluating the introduction of a new product. The costs of a recently completed marketing study for the new product and the possible increase in the sales of a related product made by Axis are best described (respectively) as follows: a. Opportunity cost b. Depreciation cost c. Sunk costThe country of Luberia has discovered a massive oil field. Many companies have acquired rights to drill wells in the field. Oil engineers have calculated that the total output of oil per year (in barrels) will be Q = 1000n - n? where n is the number of wells drilled. Oil sells for $50 per barrel and a well costs $10,000 per year to drill and maintain. (a) What would be the equilibrium number of wells drilled if entry is uncontrolled? What will be the total output of oil and the net surplus generated for the economy? (b) Suppose the government nationalizes the oil industry. How many wells should be drilled to maximize surplus? How much surplus is generated? (c) Can government achieve the outcome in (b) without nationalizing the industry? How? Give a detailed answer.You get a discount on items when you order 500. The price of the item is $10 if you order less than 100 and $9 if you order 100 or more. The holding cost of the item is $2 per year. The setup cost is $20. The demand for the item is 2000 per year. Compute the optimal EOQ.