Chat with AI
Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank
Edition 2ISBN: 978-0073376356Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank
Edition 2ISBN: 978-0073376356 Exercise 7
Benjamin used regression analysis to fit quadratic relations to monthly revenue and cost data with the following results:
R = 0.007 Q2+ 32 Q
TC = 0.004 Q2+ 2.2 Q + 8
a. Plot R and TC. Estimate the quantity Q at which the maximum profit should occur. Estimate the profit at this quantity.
b. The profit relation Profit = R TC and calculus can be used to determine the quantity Q p at which the maximum profit will occur, and the amount of this profit. The equations are:
Profit = aQ2+ bQ + c
Q p = b /2 a
Maximum profit = b 2 /4 a + c
Use these relations to confirm the graphical estimates you made in ( a ). (Your instructor may ask you to derive the relations above.)
R = 0.007 Q2+ 32 Q
TC = 0.004 Q2+ 2.2 Q + 8
a. Plot R and TC. Estimate the quantity Q at which the maximum profit should occur. Estimate the profit at this quantity.
b. The profit relation Profit = R TC and calculus can be used to determine the quantity Q p at which the maximum profit will occur, and the amount of this profit. The equations are:
Profit = aQ2+ bQ + c
Q p = b /2 a
Maximum profit = b 2 /4 a + c
Use these relations to confirm the graphical estimates you made in ( a ). (Your instructor may ask you to derive the relations above.)
Explanation
Verified
Verified
(a) ot shows maximum quantity at about 1...
Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
