Two women have decided to start a cottage industry that will be run out of their homes. They are going to make two types of specialty shirts, rhinestone and embroidery. The total gross profit is given by PP(xx, yy) = 16xx + 20yy - xx2 - yy2 where xx is the number of rhinestone shirts made and yy is the number of embroidery shirts made per month. Together, they are able to make at most a total of six shirts per month. What is the number of each type of shirt that they should try t !! make and sell in order to maximize their profit each month? Solve using Lagrange multipliers approach,

Two women have decided to start a cottage industry that will be run out of their homes. They are going to make two types of specialty shirts, rhinestone and embroidery. The total gross profit is given by PP(xx, yy) = 16xx + 20yy - xx2 - yy2 where xx is the number of rhinestone shirts made and yy is the number of embroidery shirts made per month. Together, they are able to make at most a total of six shirts per month. What is the number of each type of shirt that they should try t !! make and sell in order to maximize their profit each month? Solve using Lagrange multipliers approach,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

= Two firms sell substitutable products; the market price is: P = 90-Q, where Q Q₁ + Q₂ is the total market quantity, which consists of Q₁ (the quantity produced by Firm 1) and Q₂ (the quantity produced by Firm 2). The firms choose their quantities simultaneously. Firm 1's costs are C₁ = 10- 6Q₁ +Q². Firm 2's costs are C₂ = Q². Which is the best response function for Firm 2? O O O O Q₂ = 15. 1 Q₂ = 30 - ²0₁₁ 3 Q₂ = 42 + ²³² Q₁₁ 2 = 1. 3 Q₂ = 45. What is the equilibrium market quantity Q? O Q = 15.25. O Q = 30. Q = 46.5. O Q = 50. What is the equilibrium market price P? O P = 90. O P = 60. O P = 43.5. O P = 10.
Four companies (Firm 1, 2, 3 and 4) are producing a product for the market. Each company will decide the number of products produced. You are given that • . Each firm can choose its qi. Given the quantites produced by four companies (denoted by 91, 92, 93, 94 respectively), the market price of the product is P = 400 - 91-92-93 - 94. Cost of producing one product is 20 (*Note: So the total cost for producing qi units of product is 20qi. Firm 1 and Firm 2 will first decide the quantities produced simultaneously at the beginning. After knowing 91 and 92, Firm 3 and Firm 4 will decide the quantities produced simultaneously. (a) State the strategic profiles of each firm. (b) Find all possible subgame perfect equilibrium for this games. Provide full justification to your answer.
A pizza shop sells two types of pizzas: Chicago-style and New York-style. The owner makes $8.00 Profit on each Chicago- style pizza pie & $5.50 Profit on each New York-style pizza pie. The owner would love to sell an unlimited amount of pizza but unfortunately they are limited by two production constraints: Prep Time and Cook Time. Each Chicago-style pizza requires 4 minutes of Prep Time, each New York-style pizza requires 3 minutes of Prep time, and there is only 600 minutes of Prep Time available. Each Chicago-style pizza requires 5 minutes of Cook Time, each New York-style pizza requires 2.5 minutes of Cook Time, and there is only 550 minutes of Cook Time available. Based on the profit contributions & constraints given in the information above, what is the pizza shop's expected profit if it produces at the optimal amount? $800 $1120 $1560 $1100 O $1320
Scenario: In the town of Isoville there are two grocery stores: Alfonso’s Ammenities and Bernice’s Bargains. The grocery stores are located at either end of the town, 1km apart. Recently, the manager of Alfonso’s Ammenities has proposed installing new self-service checkout technology, which promises to reduce the cost of each transaction at the grocery store by reducing staffing costs. The new technology is expected to reduce the marginal cost of selling a typical basket of groceries by $3. However, experience in other locations has shown that in about 25% of installations the self-service technology results in a significant increase in shop-lifting. In these cases, the need to hire extra security staff means that the marginal cost of a typical basket only falls by $1.50. Unfortunately, there is no way to know whether extra security will be required until after the new checkouts are installed.The Market: Isoville has 12,000 households, each of which purchases 1 basket of groceries per…
1
Suppose the robot assistant market consists of two firms: MultiTech and MicroRobo. Each of the two firms must simultaneously choose to set either a high price or a low price for its robots. If both MultiTech and MicroRobo set a high price, their profits will be SEK 30 million each. Conversely, if they both set a low price, their profits will be only SEK 3 million. On the other hand, if one firm sets a high price while the other sets a low price, the high-priced firm will incur a loss of SEK 15 million, while the low-priced firm will gain a profit of SEK 90 million. Answer the following questions: a) Write the payoff matrix of this game. b) How many Nash equilibria are there? Identify each equilibrium, what is the dominant strategy? c) Suppose MultiTech has a well-known brand, therefore receiving profits 15% higher than MicroRobo in all strategies. Explain how this would affect the payoff matrix and the firms' strategies.
The Red Lobster (RL) restaurant chain has been using two seafood vendors for lobster: Cape Cod Fisheries (CCF) and Maine's Best. Lobsters from CCF averaged $2.20/pound last year while Maine's Best averaged $3.33/lb. While quality has been good from both vendors, CCF continually delivers late and RL has to pay the dock employees overtime to accept deliveries. Last year's overtime costs were $50,000. RL purchased a total of 100,000 lbs. last year from CCF. Calculate the Supplier Performance Index (SPI) for CCF. А.) 2.20 B.) Not enough info available С.) 1.23 D.) 1.33 Е.) 1.05
Only typed answer
You manage a company that competes in an industry that is comprised of 3 equal-sized firms that produce similar products. A recent industry report indicates that the market is fairly saturated, in that a 10 percent industry-wide price increase would lead to a 22 percent decline in units sold by all firms in the industry. Currently, Congress is considering legislation that would impose a tariff on a key input used by the industry. Your best estimate is that, if the legislation passes, your marginal cost will increase by 1 dollar. Based on this information, what price increase would you recommend if the tariff legislation is passed by Congress? Instructions: Enter your response rounded to the nearest penny (two decimal places).