Salvatore ’ s Chapter 3 : a . Discussion Questions : 9 . b . Problems : 1 ( a ), 7 , and 9 .
Discussion Question 9 : How would you react to a sales manager ’ s announcement that he or she has in place a marketing program to maximize sales ?
Problem 1 ( a ): Given the following total-revenue function : TR = 9Q- Q2 ( a ) Derive the total- , average- , and marginal- revenue schedules from Q = 0 to Q = 6 by 1 ’ s .
Problem 7 : Given the following total-cost schedule , Derive the average-and marginal-cost schedules
Problem 9 : With the total-revenue curve of Problem 1 and the totalcost curve from
Froeb et al .’ s Chapter 4 : a . Individual problems : 4-5 and 4-6 .
Individual problem 4-5 : Your new insurance firm processes claims through its newer , larger high-tech facility and its older , smaller lowtech facility . Each month , the high-tech facility handles 10,000 claims , incurs $ 100,000 in fixed costs and $ 100,000 in variable costs . Each month , the low-tech facility handles 2,000 claims , incurs $ 16,000 in fixed costs and $ 24,000 in variable costs . If you anticipate a decrease in the number of claims , where will you lay off workers ?
Individual problem 4-6 : A copy company wants to expand production . It currently has 20 workers who share eight copiers . Two months ago , the firm added two copiers , and output increased by 100,000 pages per day . One month ago , they added five workers , and productivity also increased by 50,000 pages per day . Copiers cost about twice as much as workers . Would you recommend they hire another employee or buy another copier ?