BUSI 620 help Making Decisions/uophelp.com BUSI 620 help Making Decisions/uophelp.com | Page 6

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 total-cost
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 low-
tech 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?
------------------------------------------------------------------------------
BUSI 620 Week 2 Discussion Board 2