Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you help me with these questions related to the figure I provided? General Model of Price Choice by Prot Maximizing Decision Makes? 0 Q
Can you help me with these questions related to the figure I provided?
General Model of Price Choice by Prot Maximizing Decision Makes? 0 Q is quantity 0 P is price I C is cost O R is revenue 0 Z is profit 0 a and b are intercept and slope of the demand equation 0 e and f are intercept and slope of the cost equation Equation 1) Q = a + QB a > O, b 0, f> 0; Cost equation Equation 3) R = P x Q Revenue equation Equation 4) Z = R C Profit equation r Linear program in standard algebraic form maximizing revenue (R) by choice of two Lb beverages that can be produced (PF, SS) subject to three constraints (corn, sugar, machinery) . max R = 8*PF + 6*38 subject to: 0 corn constraint: 5*PF + 3*SS :1 300 0 sugar constraint: 4*PF + 2*33 5 200 I machinery constrainti 1*PF + 3*33 5 100 0 non-negativity constraints: PF 2 0, SS 2 0 Figure of a production possibilities frontier between two outputs with three points marked. Output 2 B Production Possibilities Frontier A C Output 1Table. Model of profits with price as choice variable. Choice Variables Price 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Equation Parameters Cost equation intercept 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cost equation slope 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Demand equation intercept 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Demand equation slope -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 -5.00 Consequence Variables Quantity 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 Revenue 0.00 45.00 80.00 105.00 120.00 125.00 120.00 105.00 80.00 45.00 Total Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Objective Variables Profit 0.00 45.00 80.00 105.00 120.00 125.00 120.00 105.00 80.00 45.00Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started