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LL produces an item, the Z, for which the demand curve is estimated to be:
P = 10 - 0.0001Q
where, P is the unit price in $ and Q is the annual sales volume in units;
Marginal revenue (MR) = 10 - 0.0002Q
The variable cost of producing the Z is $2 per unit. The annual fixed costs of production are $110,000.
What is the profit maximizing output level?
Suggested Answer: C
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9 comments · newest first
EM
Emmanuel
12 months ago
Variable cost is only $2, that's pretty low!
HE
Hermila
1 year ago
Wait, are we sure about those fixed costs?
VA
Valentin
1 year ago
No way, I bet it's 45,000 units.
JU
Jutta
1 year ago
I think it's 50,000 units!
BR
Brittney
1 year ago
Profit maximization occurs where MR = MC.
ZO
Zoila
1 year ago
I think the key here is that each new Realtor is required to work with a single experienced Realtor. That suggests a master-detail relationship, where the experienced Realtor is the master and the new Realtor is the detail. So I'm going to go with C as the answer.
FR
Frank
1 year ago
This is tricky! I keep getting confused between authentication and consolidation queries. I think it's the consolidation query, but I'm not 100% sure.
AR
Arthur
1 year ago
I'm pretty sure the SCORE statement in LOGISTIC returns both predicted probabilities and logits, but I'll need to double-check the details to be sure.
GE
Geraldo
1 year ago
This seems straightforward enough. I'll just need to make sure I get the tenant name and user account details correct. I'm feeling pretty confident I can get this done without any issues.