Two companies are producing widgets. It costs the first company q12 dollars to produce q1 widgets and the second company 0.5q22 dollars to produce q2 widgets. If a total of q widgets are produced, consumers will pay 200 - q dollars for each widget. If the two companies want to collude in an attempt to maximize the sum of their profits, how many widgets should each company produce? (The model for this type of problem is called a collusive duopoly model.)

Q: The Dreamscape Production (DP)) is considering producing a pilot for a comedy series in the hope of…

A: Given,                                                                             State of Nature…

Q: A winner of the multi - state lotto won a one-time payout and decided to invest part of it into an…

A: The objective of the question is to calculate the monthly payments of an annuity given the principal…

Q: A recently concluded Kaggle competition had a prize of $60,000 and was about predicting customer…

A: Customer satisfaction is a critical factor for the success of any business. Satisfied customers are…

Q: A small town has two service stations, which sharethe town’s market for gasoline. The owner of…

A: a. Payoff matrix Since we have asked to present the information in the form of payoff table, where…

Q: he probability that a mobile phone is stolen in an electronic shop is 0.0008. If 8500 mobile phones…

A: Quality refers to the degree of excellence of something. Quality has some standard on the basis of…

Q: Which of the following gambles has the largest objective risk? 20% chance of winning $100 and 80%…

A: 20% chance of winning $100 and 80% chance of losing $100   In this Option, We have an 80 %…

Q: Habard’s, a chain of hardware stores, sells a variety of tools and home repair items.One of their…

A:

Q: Jose always leave for school at 10:00 a.m, Jose is always on time, Betty assumes, then that if she…

A: At the time of the scientific process, deductive and inductive reasoning is used to reach a rational…

Q: The JSM company has been approached by an individual who has an idea for a new product. He wants to…

A: Find the decision tree below: Here costs are mentioned with a negative sign. The optimal decision…

Q: Suppose your economics professor has an extra copy of a textbook that he or she would like to give…

A: The correct answer is option B Option b: Auctioning off the textbook to the highest…

Q: A television network earns an average of $25 million each season from a hit program and loses an…

A: For a value of C = $160,000, build a precision tree by the procedure given below, 1. Precision tree…

Q: A decision tree is a graphic display of the decision process that indicates decision alternatives,…

A: THE ANSWER IS AS BELOW:

Q: A. Find the sample size. (Round up your answer to the next whole number.) B.How would you tell…

A: Given information: AQL=9% LTPD acceptable by the assembly department=44% Consumer's risk=10 percent…

Q: Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional…

A: Here, I have been given three alternatives, each alternative has a specific state of nature, I will…

Q: Comerstone Solutions, LLC. is deciding between developing an advanced thought-activated software, or…

A: Given data is Price of new thought activated software = $15.5 million Probability of successful…

Q: Companies can use the expected value method to estimate variable consideration when... The…

A: Option a: - The expected value method gives a single outcome irrespective of the number of the…

Q: Large-scale Integrated (LSI) circult chips are made in one department of an electronics firm. These…

A: Given-

Q: find the breakeven

A: Given, Average = 30 miles per gallon of gasoline Tax credit = $1500 Interest rate = 3% Average = 25…

Q: Sushow Inc. is a show company that makes an average of $400,000 from a good show and loses an…

A:

Q: If you want to invest in a project that cost $3.5 million. As we are unsure about the future demand,…

A: Decision analysis is a part of business operations where the organization has to take a decision…

Q: At a price of $28.75, producers will provide 8 items, while at a price of $34.25, they will provide…

A: The point at which the quantity supplied of a good or service equals the quantity demanded is…

Q: policy or mechanism could solve any informational imbalances

A: An EVPI (expected value of perfect information) is the difference between actual highest return and…

Q: What is the potential value if they release the product next month?

A: Here, there are two options, for each option, I am determining the expected value, as per this…

Q: TenTen Company manufactures video recorders. It is so certain of its quality control that it is…

A: May there be 4 states in the Markov chain. The main state U is that the recorder is in its first…

Q: The second law of thermodynamic, according to Clausius statement says Select one: a. it is…

A: The second law of thermodynamics, according to the Clausius statement, says it is impossible to…

Q: If the farmer uses pesticides he expects a crop of 60,000 bushels; if he does not use pesticides he…

A: Cost of Pesticides = $20,000 Other Costs = $450,000 Price of corn: P1 = $10 (probability = 0.50) P2…

Q: You are entrusted with deciding whether to make or buy software. The make decision has a setup cost…

A: Make decision: Set up cost = $15000 Variable cost (monthly maintenance) = $1200 Purchase decision:…

Q: Tires that fail in service result in significantly higher replacement costs than those replaced…

A: To find: The optimal age replacement policy. Given: The 18 wheeler failure on the road cost $300.…

Q: A decision maker using an exponential utility function  would prefer a random payoff with an…

A: ANSWER 1: TRUE EXPLANATION : A decision maker who uses exponential utility function is risk-loving.…

Q: Emma can either buy a used car or buy a new car. The used car costs $12,800 with a 40% chance she…

A: Number of alternatives: 2 Alternative 1: Buy a used car Alternative 2: Buy a new car

Q: Construct a decision tree of the above situation clearly identifying the decision and chance nodes.l…

A: Decision trees are commonly used to predict the expected payoff for a decision. The expected payoff…

Q: You are attempting to establish the utility that your boss assigns to a payoff of $1,200. You have…

A: To find out? The utility function of $1200

Q: Hill's Hardware Store is offering an incentive to customers.  For every snowblowerr purchased at…

A: In an organization, the structure, framework, and design play key roles in determining the level of…

Q: At the beginning of each day, a patient in the hospital is classifed into one of the three…

A: Below is the solution:-

Q: When a choice is communicated in terms of potential losses, most people choose the option with less…

A: The statement is almost true. Business risk could be a wide category. It applies to any occasion or…

Q: The higher the price, the fewer goods or services consumers will demand. Conversely, the lower the…

A: Demand is the willingness of the consumer to purchase a particular good or service at a particular…

Q: Construct a decision tree to help the farmer make his decision. What should he do? Explain your…

A: A decision tree is the analysis of the options that are to be considered or chosen among to take the…

Q: Larry’s Bakery operates a chain of ten high-end bakeries. Larry, the owner of these amazing…

A: In order to represent decision-making when faced with many risks in events and their potential…

Q: Now, imagine that Port Chester decides to crack down on motorists who park illegally by increasing…

A: The cost of a ticket = $100 Opportunity cost = $18

Optimization Models

Optimization models are mathematical models that help organizations determine the best way to allocate scarce resources to achieve specific objectives. These models can be used to solve a wide variety of problems, from finding the most efficient route for a delivery truck to determining the optimal mix of products to stock in a store.