You are in the process of solving a basic price optimization problem to determine what price...

You are in the process of solving a basic price optimization problem to determine what price to charge for a product in order to maximize contribution. Your demand is exponential and its function is D(p) = 20000 * p^-2 and the incremental cost is $15.

A. what is your objective function?

B. you have solved a basic price optimization model and determined that your original contribution is $333.33 and you will sell to 22.22 customers. What is your optimal price?

C. You used to make a contribution of $320 and sell to 32 customers. What price did you used to charge?

D. What is your price elasticity at $25?

Expert Solution

Feel free to leave a comment below to clarify doubts;
I will update the answer body with whatever explanation you need.

Please leave an upvote if this helps!
-----

Rahul Sunny answered 2 years ago

How to determine all the basic solutions of an optimization problem, and classify them as feasible...

How to determine all the basic solutions of an optimization problem, and classify them as feasible or infeasible? As an example, Maximize z= 2x1 + 3x2 Subject to: x1 + 3x2 <= 6 3x1 + 2x2 <= 6 x1 + x2 >= 0 Some solutions are (2,0), (0,2), (0,0), (6/7, 12/7), but are there more solutions? And how do you tell if they are infeasile/feasible? Would you need to graph it?

Dynamic Programming (DP) is an algorithmic technique for solving an optimization problem by breaking it down...

Dynamic Programming (DP) is an algorithmic technique for solving an optimization problem by breaking it down into simpler subproblems and utilizing the fact that the optimal solution to the overall problem depends upon the optimal solution to its subproblems. When the technique is applicable, this condition can be extended incrementally without having to alter previously computed optimal solutions to subproblems. Eventually the condition applies to all of the data and, if the formulation is correct, this together with the fact...

What are the theorems that can be used when solving optimization problems?

What four purposes are served by clarifying objectives early in problem-solving process?

Optimization Problem

We want to construct a box whose base length is three times the base width. The material used to build the top and bottom cost $10/ft2 and the material to build the sides cost $6/ft2 . If the box must have volume 50 ft3 , what is the minimum cost of the box?

Solve the following optimization problem (Be sure to include the statement of the optimization problem and...

Solve the following optimization problem (Be sure to include the statement of the optimization problem and a graph of the feasible in your solution): Jamie has joined a building contest. A dog shape requires 3 small blocks and one large block to build. A robot shape requires 5 small bricks and 5 large bricks to build. Jamie has a supply of 240 small bricks and 100 large bricks. If a dog is worth 2 points and a robot is worth...

How would you reply to this post Limited problem solving is a process where consumers do...

How would you reply to this post Limited problem solving is a process where consumers do not search for information because they use simple decision making to decide whether or not to purchase an item. Extended problem solving is more elaborate with the decision-making process, including more research into reviews and comparisons between products.

What difficulties might you anticipate when using the rational problem-solving process? Why? What additional difficulties might arise...

What difficulties might you anticipate when using the rational problem-solving process? Why? What additional difficulties might arise because of personal attributes? Which of these have you experienced? Explain. What were the consequences? How can these difficulties be avoided?

What is Group Problem Solving? Explain the different types of problem-solving techniques. Please explain what technique...

What is Group Problem Solving? Explain the different types of problem-solving techniques. Please explain what technique you think is most effective and why?

The toughest part of the problem-solving process is _____. Question 2 options: clarifying the problem identifying...

The toughest part of the problem-solving process is _____. Question 2 options: clarifying the problem identifying the problem that you want to work on selecting your best option generating multiple solutions Question 3 (1 point) Although a _____ allows managers to take the business concept beyond the idea stage, it doesn't accomplish the actual work. Question 3 options: plan vision mission goal Question 4 (1 point) Long-range planning that establishes an overall course of action for a company is generally...

Question