Question

In: Economics

We produce our radar sensors for autonomous vehicles in two different plants, and I would like...

We produce our radar sensors for autonomous vehicles in two different plants, and I would like you to think about optimal production levels in our multi-plant production scheme to maximize our profits.

Our first plant has the following weekly cost structure: C1(Q1)= 20,000 + 0.5Q12 and our second plant has the following weekly cost structure: C2(Q2) = 40,000 + 0.25Q22.

Furthermore, our sales team has informed me that our weekly inverse demand function takes the following form: P(Q) = 500 - 0.5Q.

Give me a recommendation on what weekly production levels should be in each plant, and also recommend a price point for us to hit our sales target. Finally, let me know what our forecasted profits will be if we follow your production and pricing advice.

Solutions

Expert Solution

In this question we have to combine the costs and then calculate total revenue and do the question by differenciation as seperate demand curves are not given. the price for the product will be

500-Q1-Q2 which is $125/unit.

and quantity produced are

Q1= 125units and Q2= 250units


Related Solutions

As we wrap up our course in principle of managerial accounting, I would like you to...
As we wrap up our course in principle of managerial accounting, I would like you to discuss how this class could be relevant to your future professional careers. Many of you won't become professional accountants, but there are many concepts that you could see again in your careers. Please take a minimum of 2 paragraphs and discuss at least 2 significant concepts that you have learned that not only caught your attention, but also could be very valuable to take...
Are we taking more vitamin supplements than our parents? If so or not I would like...
Are we taking more vitamin supplements than our parents? If so or not I would like you to please analyze how lifestyle changes between our parents and ours that have influenced this behavior of taking more or less vitamin supplements.
I would like you to determine if there are differences between two groups in our class...
I would like you to determine if there are differences between two groups in our class data. You may choose to compare men and women, short people and tall people, people who like blue and people who like green, or any other split that you wish. It doesn’t matter how you decide to split up your groups. You will then select one QUANTITATIVE variable to compare between the two groups.Please turn in the following: 1. What two groups are you...
① Would our goal of maximizing the value of the stock be different if we were...
① Would our goal of maximizing the value of the stock be different if we were thinking about financial management in a foreign country?   Why or why not? ② Suppose you own stock in a company. The current price per share is $25. Another company has just announced that it wants to buy your company and pay $35 per share to acquire all the outstanding stock. Your company’s management immediately begins fighting off this hostile bid.   Is management acting in...
For this post, I would like for us to discuss some event in our lives (of...
For this post, I would like for us to discuss some event in our lives (of course that we feel comfortable discussing) that we have associated with either good or bad experiences or any examples.Let's organize our posts in the following fashion: 1). Discuss an event that you have had with which you associated good or bad experiences.  Some of you may have this experience with a dentist's office when you were younger (sorry folks who are studying dentistry ;), going...
I would like you to find an expressive art that reflects what is happening in our...
I would like you to find an expressive art that reflects what is happening in our culture today (include discussion on race, class, gender and ethnicity) analyzing the piece, performance or story.
We are investigating two different retirment plans that we can invest our money in. Plan A...
We are investigating two different retirment plans that we can invest our money in. Plan A invests $45,000 with an annual interest rate of 4.8% compounded continuously, and plan B invests $50,000 with an annual interest rate of 4.5% Suppose we plan on retiring in 5 years. how much will plan A be worth at that time? How much will Plan B be worth in 5 years? Suppose instead we need at least $100,000 in this account we retire, and...
What information would you need to estimate the demand function for autonomous vehicles (self-driving / self-driving)?...
What information would you need to estimate the demand function for autonomous vehicles (self-driving / self-driving)? (You do not need to estimate the demand function, but it is expected that (1) list variables that would determine the demand for this type of vehicle, (2) explain whether demand would increase or decrease in the face of a change in each of these variables and (3) identify how you would measure those variables.
i would like to know what proedure is best used to produce and maintain pure cultures...
i would like to know what proedure is best used to produce and maintain pure cultures of two diffrent orgamisms ? i belive its aseptic technique on a nutrient agar slant but not sure if im correct
How can we (our immune cells) produce so many different antibodies to responds to virtually all...
How can we (our immune cells) produce so many different antibodies to responds to virtually all of the harmful antigens?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT