Applied difficultys 2 BUS640: Managerial Economics Chapter 3: Problem 2: Appalachian Coal Mining believes that it can affix labor productivity and, there- fore, net revenue by decline air defilement in its mines. It estimates that the bare(a) toll function for reducing taint by installing additional capital equipment is MC = 40P where P represents a decrement of one unit of contaminant in the mines. It also feels that for every unit of defilement reduction the marginal increase in revenue (MR) is MR = 1,000 - 10P. How much pollution reduction should Appalachian Coal Mining undertake? MC = MR and drub for P. That is 40P = 1000-10P 40P+10P=1000 50P=1000 P=20 units. Chapter 3: Problem 4: 20 first Century Electronics has detect a theft occupation at its warehouse and has unyielding to mesh certification system guards. The besotted wants to occupy the optimal number of certificate guards. The following accede shows how the number of security gu ards affects the number of wirelesss stolen per week. build of security Guards rate of radio sets stolen per week 050 cxxx 220 314 48 56 a. If each security guard is remunerative $ two hundred a week and the monetary value of a stolen radio is $25, how many another(prenominal) security guards should the firm hire?

2 guards: keep down of Security GuardsNumber of radios stolen per week 050(200 × 0) + (25×50)=1250 130(200 x 1) + (25 x 30) =950 220(200 x 2) + (25 x 20) = 900 314(200 x 3) + (25 x 14) = 950 48(200 × 4) +(25 × 8)=1000 56(200 x 5) + (25 x 6) =1150 b. If the cost of a stolen radio is $25, what is the most the firm wou! ld be voluntary to pay to hire the first security guard? 50 30=20 * $25 = ergocalciferol So the supreme would be 500, anything over 500 would not be a benefit to the company. c. If each security guard is paid $200 a week and the cost of a stolen radio is $50, how many security guards should the firm hire? 3 guards Number of Security GuardsNumber of radios stolen per week 050...If you want to get a full essay, aim it on our website:
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