2. The cost of operating a jet-powered commercial (passenger- carrying) airplane varies as the three-halves (3/2) power of its velocity; specifically, Co= knv3/2, where n is the trip length in miles, k is a constant of proportionality, and vis velocity in miles per hour. It is known that at 400 miles per hour, the average cost of operation is $300 per mile. The company that owns the aircraft wants to minimize the cost of operation, but that cost must be balanced against the cost of the passengers' time (CC), which has been set at $300,000 per hour. At what velocity should the trip be planned to minimize the total cost, which is the sum of the cost of operating the airplane and the cost of passengers' time?

2. The cost of operating a jet-powered commercial (passenger- carrying) airplane varies as the three-halves (3/2) power of its velocity; specifically, Co= knv3/2, where n is the trip length in miles, k is a constant of proportionality, and vis velocity in miles per hour. It is known that at 400 miles per hour, the average cost of operation is $300 per mile. The company that owns the aircraft wants to minimize the cost of operation, but that cost must be balanced against the cost of the passengers' time (CC), which has been set at $300,000 per hour. At what velocity should the trip be planned to minimize the total cost, which is the sum of the cost of operating the airplane and the cost of passengers' time?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The profit from the supply of a certain commodity is modeled as P(q) = 71ge-0.29 dollars where q is…

A: At some point, the company touches its optimum production level, the point at which manufacturing…

Q: The marginal profit for a certain company is MP₁(x)= x² + 18x-45. The company expects the daily…

A: Marginal profit is the additional profit that is received by the trader by an additional unit of…

Q: Find the derivative and simplify. y = (8x+7)(x² - 3x). y' = Find the derivative and simplify. f(x) =…

A: Ps:Please rate my answer if it helped you. Have a great day ahead:)

Q: The table shows the quantity of gold bars (in thousands) and the extraction cost per gold bar (in…

A: The data regarding the number of gold bars and their extraction is given below. Quantity of Gold…

Q: Find the derivative and simplify. y = (8x+7)(x² - 3x). y' = Find the derivative and simplify. f'(x)…

A: 1: 2: 3:b) The instantaneous rate of change of the function is also y' at x=−3 it is 234. Hope…

Q: Agree or Disagree and Why: One year ago, I loaned a friend $1000 and he just paid me back the whole…

A: Inflation and interest rate: The inflation rate determines the growth rate of a nation's overall…

Q: A community bird-watching society makes and sells simple bird feeders to raise money for its…

A: The material cost for each feeder is $5. The society sells each feeder for $9 and sells 24 per unit.…

Q: Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a…

A: A Request for Proposal (RFP) is a formal document issued by an organization, typically a company or…

Q: The demand and cost equations for the production of a certain ancillary component of HDTVs are given…

A: Given information: p(x) = 300 - (1/30)x ------------> demand equation C(x) = 15000 + 30x…

Q: Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The…

A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

Q: You manage two chocolate factories. Using only these two factories, you must produce exactly 420 kgs…

A: Total Cost refers to the overall cost incurred by the firm

Q: The wage rate of Zeta Corp. employees is 20 million per month, while the cost of one unit of machine…

A: The optimal level of production is the result where the minor income got from the last unit…

Q: The variable x represents the number of HDTVs manufactured and sold in a given month. The variable…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: In 2022, a company estimates that $500,000 will be spent to produce a new product. If the company…

A: Cost of producing single unit = $4 Estimated cost for new product h $500,000 Expected sale =…

Q: Part 1 of 2 40%, 2 of 5 points Points: 0 of 1 Save The marginal cost of a product can be thought of…

A: To minimize the marginal cost of producing digital cameras, we need to find the minimum point of the…

Q: As Starlink is made available to more and more countries, we know for certain that for Starlink...…

A: Average cost is the per-unit cost of production, which is calculated by dividing the total cost of…

Q: Suppose we have another firm known as Sepanyan Corporation which makes a product known as Yeghias.…

A: It is given that the Total cost of the firm is equal to $10,000 and the fixed cost is equal to…

Q: An artisanal manufacturing plant has 30 horsepower of connected load and consumes 2,800…

A: Given, A consumer consumes 2,800 kW hours monthlyManufacturing load of the plant is 30…

Q: In Bushville, residents typically either work as salaried employees or owns small business on…

A: The objective of the question is to understand the concept of opportunity cost, how it affects the…

Q: Which one of the following is the derivative of √K? (1/2)k-1/2 O (1/2)k 02K² 0

A: In economics derivatives are an important tool to determine impacts and rates of change in economic…

Q: Consider the following linear program: Maximize 30X + 10Y Subject to: 3X + Y ≤ 300 X + Y ≤ 200 X ≤…

Q: Maximize the following equation: w (x, y) = -3x2 + 30x – 6y² + 48y | Subject to x + y = 5 O x=2.33;…

A: For maximization we set the lagrangian as..

Q: park Studio produces commercials for other companis. A 2-minute commercial, for example, needs…

A: Isoquant is the graphical representation of all the combinations of inputs on a curve that produces…

Q: What would the value C(75) represent in this context? B. Is function Cincreasing or decreasing? What…

A: C is the cost of the rental car in dollars and it a function of the miles driven in a day or the…

Question

=
2. The cost of operating a jet-powered commercial (passenger-
carrying) airplane varies as the three-halves (3/2) power of its
velocity; specifically, Co kny3/2, where n is the trip length in
miles, k is a constant of proportionality, and vis velocity in miles
per hour. It is known that at 400 miles per hour, the average cost of
operation is $300 per mile. The company that owns the aircraft
wants to minimize the cost of operation, but that cost must be
balanced against the cost of the passengers' time (CC), which has
been set at $300,000 per hour. At what velocity should the trip be
planned to minimize the total cost, which is the sum of the cost of
operating the airplane and the cost of passengers' time?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

TC= 1/3 Q^3- 15Q^2 + 480Q+ 900 a) Write down the equation for MC, AFC b) Find the values of Q for which MC and AVC are minimized c) Plot the graph of MC, AFC and AVC on the same graph. Comment
.(a) A firm has production function q(k,l) = k'/³1²/3, where k denotes the capital used and I denotes the labour employed. Suppose that each unit of capital costs v dollars and each unit of labour costs w dollars, so that the capital and labour costs are vk + wl. Use the Lagrange multiplier method to determine the values of k and I that minimise the cost of producing Q units of the firm's good. Find the corresponding minimised value, C, of this cost and the value, X*, of the Lagrange multiplier corresponding to the optimising values of k and l. Show that d* =
Q 4: Answer the questions below using the following Table (you can also take help from the Figures if needed): MC ($) 7,259 6,548 5,838 5,125 4,417 3,706 MC ($) 6,541 6,821 7,102 Total cost ($) 105,311,250 202,070,000 Students AC ($) Undergraduate 13,750 27,500 41,250 55,000 68,750 82,500 Students 7,659 7,348 7,038 6,727 6,417 6,106 369,985,000 441,168,750 503,745,000 Total cost ($) AC ($) Graduate 2,750 5,500 8,250 11,000 13,750 16,500 12,140 33,385,000 9,399 8,672 8,365 8,249 8,228 51,697,000 7,383 7,664 7,945 92,015,000 113,423,750 135,762,000 (a) IDENTIFY and EXPLAIN differences between the universities' cost structures for undergraduate and graduates? (b) The new Vice Chancellor has asked you for advice on whether she should consolidate or expand the programs. Provide your advice using the information in the table. (c) What is the effect of the introduction of a license fee of 9 million dollars by the government for undergraduate programs being offered by universities on the…
5. An entrepreneur has costs for storing and shipping materials for his manufacturing process given by the function C (k) = 100 (100 + 9k + 144 / k) when 1 ≤ k ≤ 100, where C (k) is the cost total storage and transportation for 100 days of operation. If a load of k tons of material moves every k days, for what values of k does C (k) have a minimum value?
1
If the cost C (in dollars) of removing p percent of the particulate pollution from the exhaust gases at an industrial site is given by the equation shown below. 6100p C(p) = 100-p Find the rate of change of C with respect to p. C'(p) = Suppose the revenue (in dollars) from the sale of x units of a product is given by R(x) = 36x2 + 50x 2x + 2 Find the marginal revenue when 35 units are sold. (Round your answer to the nearest dollar.) $ Interpret your result. When 35 units are sold, the projected revenue from the sale of unit 36 would be $
Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 40,000 10 60,000 20 65,000 30 68,000 40 70,000 50 71,000 60 72,500 70 73,500 80 74,000 90 74,300 100 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is s At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per flight) 1,000 700 30 400 90 200 100
A lake has two species of fish: bass and catfish. The number of bass and catfish living in the lake, B and C respectively, depend on the temperature of the lake, T (in degrees Farenheit). The functions modeling this dependency are given below: B(T) = 8T2 + 976T – 28890 С(Т) 3D — 2T?+244T — 6893 What are the two temperatures at which the number of bass in the lake is the same as the number of catfish? Enter exact expressions or round your answers to the nearest thousandth. T : T
ABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags for every 10 bundles of materials purchased. Every month (20 working days), ABC purchases 100 bundles of materials. Each bundle requires one (1) labor minute to process, and every labor hour costs an average of $14.00. Each week (5 working days), ABC pays $5,000 inoverhead costs, and equipment costs $600 a day to operate. (a). How many shipping bags does ABC produce in a standard month (20 working days)? Each workday (8 hours)? (b). What is the single-factor productivity for labor, per workday (8 hours)? Whatis the multi-factor productivity, for every dollar spent per shipping bag?
PER-UNIT COST (Dollars) Jouet is a profit-maximizing firm producing toy trains-a capital-intensive good-which are sold in its home country, France, and abroad in Russia. Jouet chose foreign production as a method of penetrating the Russian market and has to decide whether it is more efficient to directly invest in ussia to establish a production subsidiary or to license the technology to a Russian firm to produce its goods. n the following graph, AVCR is the average variable cost curve of a Russian firm producing toy trains. (This curve represents costs such as labor nd materials.) The curve ATCsidiary represents the total unit costs Le Jouet will face if it establishes a subsidiary in Russia. ATCudary AVC Russia 15 20 4 60 75 90 105 120 130 150 PRODUCT (Thousands)
The production of a certain good in terms of the amount of labour invested L and the amount of capital invested K, is given by the production function Q = 5 L²/3 K ¹/3 At this moment 512 units of labour and 1 000 units of capital are invested daily. This means that at this moment 3200 units are produced daily. a) The company receives an order for 3200 units. Give an implicit equation for the combinations (L, K) resulting in a production of 3200 units. b) Determine K'(L) for L = 100 using implicit differentiation. Interpret your result in a sentence in the context of the word problem. c) Determine the following expression and interpret your result in a sentence in the context of the word problem: 100 K'(100) K d) Set up the graph of K as a function of L using a logarithmic scale on both axes. Interpret the slope in L = 100.
C. Suppose your neighbor is a physics major who also races motorcycles, and she tells you that horsepower can be expressed in terms of the following equation: H = MDA/S where M=mass, D-distance, A=acceleration and S and H are as defined above. Based on this conversation with your neighbor, you decide to change the functional form of the relationship to include 1/H rather than H as an explanatory variable because that's the appropriate theoretical relationship between the two variables. Estimate the above equation, substituting 1/H for H. Which of the two models do you prefer and why?