Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 2, Problem 14P
a.
To determine
The optimal monthly sales for the product and profit at the optimal volume.
b.
To determine
The range of profitable demand during a month.
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Students have asked these similar questions
Cost, revenue, and profit are in dollars and
x is the number of units.
A firm knows that its marginal cost for a
product is
МС- 4x+ 25,
that its marginal revenue is
MR%3D 75 - 6х,
and that the cost of production of 60 units
is $8,880.
(a) Find the optimal level of production.
units
(b) Find the profit function.
P(x) =
(c) Find the profit or loss at the optimal
level.
Kk.299.
A company produces two different versions of a certain product. Let q₁ indicate the amount produced of the
first version. The cost function c(q₁) for the first version (expressed in euros) can be described by the equation
c(q₁) =
9₁ · √√0.59² +59₁
10
a) For which value(s) of q₁ is the instantaneous rate of change of the cost function equal to 1.75? You
may use the graphical calculator to find zeros of a polynomial function if needed.
b) Using the result from a), give a precise economic meaning for the instantaneous rate of change of
1.75.
We now denote 92 as the amount produced of the second version. The equation of the cost function c(9₂)
for the second version is unknown. We do know that the current cost for a production of 2 units of the second
version is 50 monetary units and that the elasticity of the cost in terms of the produced amount when 92 = 2
is equal to 1.88.
c) Give a linear approximation ƒ of the cost function c(9₂) for production amounts close to q₂ = 2.
Chapter 2 Solutions
Engineering Economy (17th Edition)
Ch. 2 - An experimental composite engine block for an...Ch. 2 - Given below is a numbered list of cost terms. For...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10P
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Suppose you are going on a long trip to your...Ch. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - A company uses a variable speed honing machine to...Ch. 2 - Prob. 31PCh. 2 - An automobile dealership offers to fill the four...Ch. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - A hot water leak in one of the faucets of your...Ch. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48SECh. 2 - Prob. 49SECh. 2 - Prob. 50CSCh. 2 - Prob. 51CSCh. 2 - What is the optimal number of units that should be...Ch. 2 - Prob. 53FECh. 2 - Prob. 54FECh. 2 - Prob. 55FECh. 2 - Prob. 56FECh. 2 - Prob. 57FECh. 2 - Prob. 58FE
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