As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes before you learn how strong demand is for homes in this large neighborhood. There is a 60 percent chance of low demand and a 40 percent chance of high demand. The corresponding (inverse) demand functions for these two scenarios are P = 300,000 – 400Q and P = 500,000 – 275Q, respectively. Your cost function is C(Q) = 140,000 + 240,000Q. How many new homes should you build, and what profits can you expect?

Answers

Answer 1

The number of new houses that will be built is 200 while the profit is $13860000.

From the information given, the expected demand function will be:

= 60% × (300000 - 400Q) + 40% × (500000 - 275Q)

= 380000 - 350Q

Therefore, P = 380000 - 350Q

Since profit is the difference between the revenue and cost. This will be:

= (380000 - 350Q) × Q - (140000 + 240000Q)

Therefore, maximizing the profit will be:

380000 - 350 × 2Q - 240000 = Q

Q = 200

Therefore, profit will be:

= (380000 - 350Q) × Q - (140000 + 240000Q)

= (380000 - 350 × 200) × 200 - (140000 + 240000 × 200)

= 13,860,000

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Related Questions

Which of the following is true about cover letters?
Cover letters are equivalent to a personal sales pitch
O Cover letters can be the same for all prospective employers
Cover letters should not list anything specific about the company
O Cover letters should be sent the day before the résumé

Answers

Answer:

Cover letters are equivalent to a personal sales pitch

Explanation:

A cover letter, also the job application letter, is sent to prospective employers together with a resume. Its purpose is to complement the resume, but not to duplicate it.  A cover letter specifies the job an applicant is seeking and the reason why the employer should hire them.

A cover letter allows job applicants to market themselves to the employer. It offers an opportunity for the applicant to explain why they are the best candidate for the job and what they can do for the employer. Potential employers rely on cover letters to a certain extent in determining who to shortlist for a job interview.

Cover letters are often used in job applications. Cover letters are equivalent to a personal sales pitch.

The main reason of a cover letter is to arose the interest the employer in reading your resume.

The letter often gives information to the employer about who the candidate is as a professional and also as a person.

It often includes their areas of interests, professional goals, knowledge, skills they've gained over the years, etc.

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Why do many investors choose to make diversification a key element of their investment strategies?

Answers

Spreading out investments through diversification reduces the likelihood of losing money is the way diversification of investment strategies.

What is diversification, and what does it reduce in a portfolio?

In order to lower the risk of market volatility, investors frequently use the investment strategy of diversification, in which they distribute their portfolio among a variety of securities and asset classes.

It is a component of asset allocation, which refers to how much of a portfolio is invested in different asset types.

Thus, Spreading out investments through diversification reduces the likelihood of losing money

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Answer: C. Diversification spreads out investments to limit the risk of losing money

Explanation:

I just took the quiz

Why do you need to create an effective advertising message? An effective advertising message tells customers about the specific details and features of your product. An effective advertising message tells customers what your competitors are offering. An effective advertising message tells customers the benefits of what you have to offer. An effective advertising message only focuses on products and not services.

Answers

Answer:

An effective advertising message tells customers the benefits of what you have to offer.

Explanation:

The main goal of an effective advertising message is to convince the potential customer population that their product is right for them and is the best choice in the current market. This is done by telling customers the benefits of what you have to offer. If the advertisement shows customer that the product provides a needed benefit to them it will be an efficient advertisement and convince them to buy it.

What are the four basic elements of business?
A. Production, fiancé, marketing, and customer service
B. Marketing, finance, networking, and production
C. Service, finance, employees, and marketing
D. Customer service, investment, marketing, and service

Answers

Answer:

The four basic elements of business are:

A. Production, fiance, marketing, and customer service.

Explanation:

These elements make up a business organizational structure.  Functional structures and hierarchies revolve around these basic elements.  Production in some organizations will be described as operations.  It is the core of the business.  Revenues that sustain the business are generated from production or operations.  Finance handles the revenues and the costs associated with running a business.  Marketing ensures that the goods and services from production or operations are made known to customers through research, information acquisition, and customer education.  Finally, customer service ensures good relationships between the business and the customers, who are the chief patrons of the business. These essential elements ensure business success.

Answer:

Production, finance, networking and customer service

Explanation:

Match the economic scenario to the relevant characteristics. Increase in savings increase in unemployment more demand for funds among borrowers increase in government borrowing increase in price of products economic recession economic expansion

Answers

Answer:

Economic expansion

Increase in savings

The economy is expanding which means that people have access to higher wages. This will enable them to save more.

More demand for funds among borrowers

As the economy is expanding, people will borrow to consume more as well as to invest which will lead to a higher demand for borrowed funds.

Increase in price of products

With more people able to afford goods and services, prices will increase as there is now more demand for those goods.

Economic recession

Increase in unemployment

With the economy shrinking, companies will be making less profit and will have to layoff workers to reduce their costs.

Increase in government borrowing

In a recession, the Government will have to spend more to prop up the economy like the US Government did during this pandemic by providing stimulus packages. This spending is supported by borrowing.

It can be referred from the text that ...
The GMX 200 is a disposal garbage
b. Used batteries can be replaced in the product
c. The users will get full refund if there is malfunction during the guarantee period
d. There are two kind of batteries to replace the old batteries​

Answers

This question is incomplete because the text is missing; here is the missing part:

Text 1

1. Remove the back cover, using a small screwdriver to loosen the screw

2. Remove batteries and replace with two new AAA batteries. use the + and - signs to position correctly. dispose of used batteries properly.

3. Replace the cover and tighten the screw with the screwdriver

4. Reset the time using the side buttons

The GMX 200 is guaranteed to keep time accurately for one full year from date of purchase should it malfunction in any way during this time period, your money will be refunded in full.

The correct answer to this question is C. The users will get full refund if there is malfunction during the guarantee period.

Explanation:

This text provides instructions to change the battery in a GMX 200, which can be inferred it is a clock or similar device. This text explains the different steps users need to follow to change batteries. Moreover, in the last section of the text, it is clarified if there is any failure during the first year, which is the guaranteed time "your money will be refunded in full". According to this, it can be inferred during this time any malfunction implies the user gets a complete refund (option C.)

1.) The PERCENTAGE of interest or dividends earned on money that is invested

Answers

Answer:

Rate of return.

Explanation:

Rate of return can be defined as the percentage of interest or dividends earned on money that is invested.

In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.

Basically, the rate of return which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.

Hence, the rate of return is used as a long-term decision-making tool to determine whether or not an investment is worth it.

The _____ is the address of the letter writer.

Help please, I think it’s inside address but I’m not sure still

Answers

Answer:

Sender's Address

Explanation:

I believe inside address is the receiver's address.

What is the act of gathering information relative to a company's action and the factors that affect the space in which the company operates?

Answers

The answer is Market Research .

Which of the following influences the consumer when he or she is deciding wether to buy a product?
A. The stock market
B. Opinion factors
C. External factors
D. Multiple factors

Answers

Answer:

D.

Explanation:

The factors that infuence a consumer's decision of buying product are multiple. It can be internal, external, economic, cultural, etc.

These factors include psychological factor, social factor, cultural factor, situational factor, etc.

Many times it's psychological factors such as moods. If a person is in bad or good mood, it will affect his behavior to buy a product. Culture or social life also influences consumer's buying habit. Some buy under peer pressure or to have status in society.

Therefore, option D is correct.

Answer: External factors

Explanation:

Need help answer this question please help me

Answers

Answer:

 b). 4 and 14 units

Explanation:

The equilibrium point is the intersection of demand and supply curves. It is a condition of no excess or shortage in supply or demand in the market. At equilibrium, the quantity demand matches the quantity supplied.

At the equilibrium situation, buyers are willing to purchase the quantity supplied at the stated price. It implies both suppliers and buyers are happy with the current supply and price.

Demand for a good will MOST likely decrease when
A
there are many substitutes for it.
B
the price of it decreases.
C
consumer income rises by ten percent.
D
retailers sell out of the product.

Answers

Answer:

A. There are many substitutes for it.
I’d Definitely say A.

Eyan is giving a seminar on environmental conservation efforts in a local factory. Which qualities is Eyan using when writing and presenting his seminar? leadership, supervising, and teaching skills critical-thinking skills and knowledge of environmental regulations communication skills and physical strength knowledge of machines and responsibility in operating heavy equipment

Answers

Answer: critical-thinking skills and knowledge of environmental regulations

Explanation:

Since Eyan is giving a seminar on environmental conservation efforts in a local factory, the quality that Eyan is using when writing and presenting his seminar will be critical-thinking skills and knowledge of environmental regulations.

Eyan should possess critical thinking skill as he should be able to think clearly and at the same time should also have knowledge of environmental regulations.

Answer:

critical-thinking skills and knowledge of environmental regulation

Explanation:

It's below me

When a strong unity of command is present, employes are assigned to more than one manager.
True
False

Answers

Answer:

The correct option is;

False

Explanation:

Unity of command is the organizational arrangement, whereby all employee assigned to a particular department answer to their line manager, and vice, versa, the line manager directs the activities of all employees within his department to perform the tasks of the organizational engagement or projects for which the department is in responsible.

Give a least two reseons why u think your product and country would be a good idea

Answers

Answer:

my Product and Country Would be a good idea because instead of charging taxes I would make sure everyone is not at the same level but to a point to where no one is homeless or in need of help my product would be something that could make food for free and anytime food is not hard to come by but the wealthy buys so much food that they don't need and discard that those who do need the food cannot retrieve the food because it is already gone being wealthy is nice but if I was wealthy I would try to at least let those around me either become wealthy or make sure they never need something to the point they could die for it.

Explanation:

What is the definition of premium?

A. the value of something lost or damaged
B. the highest payout by an insurer
C. the amount paid for an insurance policy
D. the best insurance available

Answers

Answer:

the amount paid for an insurance policy or C

Explanation:

Answer:

It is C

Explanation:

David, the manager of a bookstore, prefers to directly point out other's mistakes. Some employees see his communication style as rude and
aggressive. Which of the following can cause such a conflict?
O Concern over job security
Lack of trust
Differences in work styles
Diversity in the workplace

Answers

Answer:

Differences in work styles

Explanation:

Conflicts are serious disagreements. They arise from differences in ideas, opinions, methodology, or actions. Conflicts create tensions and may lead to verbal or physical violence if unresolved.

David, as the manager, has his style of working. The employees under him may have different methods of performing their roles. If David does not appreciate his junior ways of working, there could be tension and unnecessary conflicts.

2. Which of the following is not an example of the law of supply?

Answers

Answer:

B

Explanation:

The law of supply summarizes the effect price changes have on producer behavior. For example, a business will make more video game systems if the price of those systems increases. The opposite is true if the price of video game systems decreases. Answer B does not specify a company supplying an item for a higher or lower price.

After asking coworkers to review a project plan, you receive feedback. Your coworker thinks there is a better way to display the data in the business report.You should add a
title
reference
abstract
table

Answers

Answer:

table

Explanation:

Which of the following documents thanks the interviewer and restates the applicant’s interest in the job?
a.
Cover letter
b.
Acceptance letter
c.
Thank-you letter
d.
Rejection letter

Answers

Answer:

c

thank you letterr.........

Answer:

C

Explanation:

I took the test

How does the work done by agriculture communications professionals compare to and differ from that of other marketing workers?

Answers

Answer:

Agriculture communications professionals need to have the same basic background on marketing, covering areas such as market research, product research, and market communication.

However, they will also need to have an agriculture-related background, because they need to understand the dynamics of the agriculture business, from farm issues, to the kind of crops or produce that they can buy or sell in a specific area, to even agricultural policy.

Recording the Sale of Common and Preferred Stock At the end of its first year of operations, Mulligan Corporation has outstanding shares of 116,000 common stock and 18,000 preferred stock. The State of Ohio authorized Mulligan to issue 19,000 shares of 6% preferred stock with a par value of $35 per share and 117,000 shares of common stock with a par value of $6 per share. Any preferred stock sold during the year had a selling price of $45.50 per share. Mulligan's common stock was issued at $20.

Answers

Answer:

the journal entries to record these transactions are:

to record issuance of common stocks

Dr Cash 2,340,000

    Cr Common stocks 702,000

    Cr Additional paid in capital, common stocks 1,638,000

to record the issuance of preferred stocks

Dr Cash 864,500

    Cr Preferred stocks 665,000

    Cr Additional paid in capital, preferred stocks 199,500

3 td
(1 po
mm
8. When Dr. Norman travels, she always stays at a Hawks family hotel. She is brand loyal, and
thinks that Hawks offers the best service. On this trip, Dr. Norman stayed at three different
Hawks hotels. Customer service was excellent at two of the hotels, but at the last hotel, the
person checking in guests was rude. Dr. Norman completes a comment card on each hotel,
knowing that Hawks strives for excellent customer service. This scenario exemplifies which
service characteristic?
Omarketability
Ovariability
O inseparability
O intangibility

Answers

Answer:

Variability

Explanation:

Variability expresses the notion that a service may vary in standard or quality from one provider to the next or from occasion to the next.

Which attack is typically performed from a hallway or doorway?
Select one
A Blitz
B. Combination
C. Transitional
D. Offensive interior

Answers

Answer:

B. Combination

Explanation:

Firefighting can be defined as a strategic approach or technique which typically involves the process of attempting to prevent and control the spread of an unwanted fire in buildings, vehicles or any other location (place).

Basically, the professionals or experts who are saddled with the responsibility of preventing or controlling this unwanted fire are known as fire fighters.

An attack which is typically performed from a hallway or doorway is known as combination.

5a) Change
the given angle
into
degress-
i) 10ʻl6' 15"​

Answers

Given :

An angle 10 16' 15".

To Find :

The given angle into degrees.

Solution :

We know, 1° = 60' and 1' = 60".

Now,

[tex]15" = (15\times \dfrac{1}{60})^{'}\\\\15"= \dfrac{1}{4}^{'}=0.25^{'}[/tex]

Now,  total minutes are :

(16 + 0.25)' = 16.25'

Converting 16.25' to degrees.

[tex]16.25^{'} = 16.25\times \dfrac{1}{60} ^o\\\\16.25^{'} = 0.271^o[/tex]

Therefore, angle in degree is ( 10+0.271 )° = 10.271° .

Differentiate between micro hydro power and hydro power. ​

Answers

Answer: Hydroelectricity is a form of hydropower and is the most widely used form of renewable energy throughout the world. ... Hydro electricity extracted from water depends not only on the volume but on the difference in height between the source and the water's outflow.

Hope this helps...... Stay safe and have a Merry Christmas!!!!!!!! :D

Explanation:

What is the difference between limited liability and unlimited liability

Answers

Answer:

Limited liability means the business owners' liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.

Explanation:

A flood damaged a building and contents. Floods are unusual and infrequent in this area. The receipts from insurance companies totaled $500,000, which was $150,000 less than the book values. The tax rate is 30%. On the statement of cash flows (indirect method), the receipts from insurance companies should

Answers

Answer:

It is shown under investing activities as a cash inflow

Explanation:

On the cash flow statement using the indirect method the receipts from the insurance company should be shown in the investing activities at $500,000

as an inflow of cash as the cash is increased

So the same is to be considered

The other $150,000 would be ignored as it is not relevant

Therefore the above is the answer

The chart indicates the education or training histories of three employees in the Agriculture, Food, and Natural Resources career cluster. A 2-column table with 3 rows. Column 1 is labeled Employee with entries Prisha, Amos, Deliah. Column 2 is labeled Education and Training with entries High school degree, bachelor's degree, master's degree; High school degree, bachelor's degree; High school degree, on-the-job training. Based on the degrees usually required by Agriculture, Food, and Natural Resources, what are most likely the jobs held by these three employees? Prisha is a Food Scientist, Amos is a Veterinarian, and Deliah is a Floral Designer. Prisha is a Parts Salesperson, Amos is an Environmental Compliance Inspector, and Deliah is a Greenhouse Manager. Prisha is a Park Worker, Amos is an Environmental Engineer, Deliah is a Zoologist. Prisha is a Farm and Management Advisor, Amos is a Forester, and Deliah is an Equipment Operator.

Answers

Answer: D

Explanation:

Answer:

D

hope this helps!!!!11

Explanation:

What does the functional organizational structure organize employees by?

Select one:
a. specialty
b. product
c. profit
d. age

Answers

Answer:

D

Explanation:

I hope this is correct and have a great day

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