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Ch12Q10 As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area
Ch12Q10
As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where beighborhood. There is a 60 percent chance of low demand and a 40 percent chance of bigh demand. The corresponding (inverse) demand functions for these two scenarios are P=200,0003500 and P=600,000200Q, respectively. Your cost function is C(Q)= 160,000+157,000Q How many new homes should you buld, and what profits can you expect? Number of homes you shouid build homes Dinfite vert can evnect is Step by Step Solution
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