No need to solve anything by graph, mainlyderivative stuff. Justify answer in 5a with a shortexplanation!5. Marginal Analysis.In each of the situations below you are asked to make a business decision justified byan analysis of a function which models some aspect of business. Your answer shouldindicate a recommended course of action along with a single sentence justifying orexplaining your recommendation.(a) Suppose the monthly profits (in thousands of dollars) for a particular franchisebusiness are well modeled by:P(t) = 10t – 60(t is measured in months)Should an investor start a new business with a short term (6 month loan), or alonger term (1-2 years) loan?

An examination of the associated benefits and costs of specific activities or financial decisions…

Answered: 5. Marginal Analysis. In each of the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3.2 Differentiate between accounting costs and economic costs. Motivate your answer with the aid of examples
Eng. Economic Q1. Would a dollar tomorrow be worth more to you today when interested is 20% or 10%?
2. (This problem derives the general result that any polynomial function is of a lower asymptotic order than any exponential function.) First, we prove a special case. Suppose that we have two functions, f(n) = n² and g(n) = 2". We will prove that f(n) = O(g(n)). • port (a). (c) Show that, for any n ≥ no, it must be the case that f(n) ≤ cog(n) = f(n+1) ≤ cog(n+1). Precisely state the argument by induction that n² = 0(2¹). Now, define f(n) = nk where k ≥ 1, g(n) = a", where a ≥ 1. (d) (Slightly harder). Argue that, for any k and a, there exists some n₁ such that : (1₁+¹)* < a.
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2. (This problem derives the general result that any polynomial function is of a lower asymptotic order than any exponential function.) First, we prove a special case. Suppose that we have two functions, f(n) = n² and g(n) = 2". We will prove that f(n) = O(g(n)). (e) (Slightly harder) Find a constant c₁ such that f(ni) ≤ cig(n1), where n₁ is defined as in part (d). (f) (Harder) Show that, for any n ≥ n₁, it must be the case that f(n) ≤ cig(n) ⇒ f(n+1) ≤ cig(n+1), and therefore nk = O(a") for all k, a ≥ 1.
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15 x+1160 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 16 Suppose a company has fixed costs of $4000 and variable costs per unit of 1. 1300 x dollars per unit. 16 (a) Find the break-even points. (Enter your answers as a comma-separated list.) (b) Find the maximum revenue. $. (c) Form the profit function P(x) from the cost and revenue functions. P(x) = %3D Find the maximum profit. $4 (d) What price will maximize the profit? (Round your answer to the nearest cent.) %$4 Need Help? Read It Watch It
A businessman needs P50,000 for his operations. One financial institution is willing to lend him the money for one year at 12.5% discount rate. Another lender is charging 14% with principal and interest payable at the end of one year. A third financier is willing to lend him P50,000 payable in 12 equal minthly installments of P4,600. Which offer is the best for him? Validate your answer.(kindly give the given, complete and detailed solution. Thank you)
Match the terms in the first column with the appropriate definition in the second column.
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arrow_forward Question Asked Jun 23, 2020 1 views Management of Ben Services identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although Ben is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000. i. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge? ii. What profit will AG Travel and Tour make if it…
10K L%. 1). Consider the production function Q = (a) What is the output when K = 100000 and L = 243? (b) Use the marginal analysis to estimate Q(99995, 243) and Q(100000, 245). (c) Use a calculator to compute these two values of Q to three decimal places and compare these values with your estimates in (b). (d) How big must AL be in order for the difference between Q(100000, 243+AL) and its linear approximation Q(100000, 245) + -DAL, to differ by more than two units?

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