Assume the demand for a company's drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost $16x. Each unit of Wozac is sold for $3. Each unit of Wozac produced incurs a variable production cost of $0.20. It costs $0.40 peryear to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.

Q: a %D 1 for all real numbers a a

A: First of all, let's find the all real numbers. Real numbers are supersets of natural numbers,…

Q: From 1929 through the early 1930s, the prices of consumer goods actually decreased. Economists call…

A: Given, Initial cost = $ 500  Rate of decrease in each year = 7 %    We have to find the cost after…

Q: (Round off your final answer to two decimal places.) The fixed cost at Harley Motors are $ 1 Million…

A: GIVEN: Product has revenue of $ 29.5 per unit Variable cost =$ 11.08 Fixed cost =$ 1 million…

Q: If

A:

Q: Hannah wants to have $6000 to help pay for a new deck in 10 years. If she wants to put her money…

A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Q: Find the economic profit for this scenario.     Principal: $5,000     Rate: 6% compounded…

A: To find the economic profit, we need to calculate the present value of the future cash flows and…

Q: Find the economic profit for this scenario.     Principal: $2,000     Rate: 7% compounded…

A: Given that Principal: $2,000 Rate: 7% compounded continuously Time: 2.5 years Risk free rate: 4%…

Q: If an investment decreases 1% the first year, 6% the second year and 9% the third year, what is the…

A:

Q: How can I find the initial investment and annual rate when I am only given the time it takes to…

A:

Q: Leonard's current salary is $65,000. Ten years from now, how much will he need to earn to retain his…

A: Given information Present annual salaryP=$65,000 Rate of inflationr=3% per year compounded…

Q: Pierre inherited $222,500 from his uncle and decided to invest the money. He put part of the money…

A:

Q: A factory contributes £1 million into a small city. It is estimated that 75% of that money is…

A: Total contribution of factory into a small city is  £1million, Money is re-spent back into the…

Q: The purchasing power (real value of money) decreases if inflation is present in the economy. For…

A: Given that  The model P = 35000 e-0.07t

Q: a car sells for $12,500 and one year later it is valued at $11,375. find the decay rate of the car

A: Explanation of the answer is as follows

Q: Jim bought a machine for 36000 RO with an estimated life of 5 years. The residual value of the…

A: Here depreciation assuming straight line depreciation. To find annual depreciation, ratio of…

Q: Assume $3000 is invested at 8%. Find a model for the growth of this investment, if the interest is…

A: Given information:Assume $3000 is invested at 8%.

Q: In 1967, the population of Clements, PA was 7,000, and in 1974 the population was 12,000. Should the…

A: When population growth is linear, the equation will be in the form of, P(t) = mt + c where t is the…

Q: A constant continuous income stream of C dollars will be invested into an account for ten years at a…

A: I am here to help you.

Q: Suppose you invest $2000 at a rate of 3.25% continuously, what is the worth of the investment after…

A: Given that P = $2000  rate of Interest = 3.25% continuously, we have to find what is the worth of…