Suppose the cost of producing a machine that lasts N pe- riods is C(N) N2, If the
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Suppose the cost of producing a machine that lasts N pe- riods is C(N) N2, If the interest rate is 5 percent, what duration should the firm plan for its machine? De- scribe the conditions determining whether it should mod- ify its behavior if consumers can maintain the machine for one extra period for $1 . Does your answer depend on whether the manufacturer rents or sells the machine?
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Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
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Related Book For 
Modern Industrial Organization
ISBN: 9780321011459
3rd Edition
Authors: Dennis W. Carlton, Jeffrey M. Perloff
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