Questions from Management Science

Q: The file contains data on prices of products for several of a

The file contains data on prices of products for several of a chain store’s locations, a discount schedule offered to customers depending on how much they spend, and commission rates of the salespeopl...

Q: Suppose Ford currently sells 250,000 Ford Mustangs annually. The

Suppose Ford currently sells 250,000 Ford Mustangs annually. The unit cost of a Mustang, including the delivery cost to a dealer, is $16,000. The current Mustang price is $20,000, and the current elas...

Q: Suppose the current exchange rate is 115 yen per dollar. We

Suppose the current exchange rate is 115 yen per dollar. We currently have a demand for 50 units of our product when the unit price is 800 yen. The cost of producing and shipping the product to Japan...

Q: Another way to derive a demand function is to break the market

Another way to derive a demand function is to break the market into segments and identify a low price, a medium price, and a high price. For each of these prices and market segments, we ask company ex...

Q: A company produces widgets at plants 1 and 2. It costs

A company produces widgets at plants 1 and 2. It costs 135x1/2 dollars to produce x units at plant 1 and 260x1/3 dollars to produce x units at plant 2. Each plant can produce up to 1000 units. Each un...

Q: If a monopolist produces q units, she can charge 400 -

If a monopolist produces q units, she can charge 400 - 4q dollars per unit. The variable cost is $60 per unit. a. How can the monopolist maximize her profit? b. If the monopolist must pay a sales tax...

Q: Continuing Problem 3 in a slightly different direction, create a two

Continuing Problem 3 in a slightly different direction, create a two-way SolverTable where the inputs are the elasticity and the production capacity, and the outputs are the optimal price and the opti...

Q: It costs a company $15 to purchase an hour of labor

It costs a company $15 to purchase an hour of labor and $20 to purchase an hour of capital. If L hours of labor and K units of capital are available, then 0.075L2/3K1/3 machines can be produced. Suppo...

Q: In the previous problem, what is the minimum-cost method

In the previous problem, what is the minimum-cost method of producing 100 machines? (Ignore the $10,000 budget constraint.)

Q: The cost per day of running a hospital is 300,000

The cost per day of running a hospital is 300,000 + 0.75x2 dollars, where x is the number of patients served per day. What number of patients served per day minimizes the cost per patient per day of r...