Answer:
a. $16.
Explanation:
the firm offer a price where marginal revenue = marginal cost
We have to solve at which quantity the price is $1.
There, the marginal revenue would match the marginal cost.
1 = 5 - 0.5q
q= (5 -1) /0.5 = 4/0.5 = 8
Now, we solve or the price at which quantity is zero:
p = 5 - 0.5(q) = 5 - 0 = 5
With that we can now solve for the consumer good as the area of the triangle above the marginal cost and below the demand function
(see attached graph)
8 x (5-1) / 2 = 16
Answer:
The manufacturer should announce a guaranteed mileage of 44528 miles
Explanation:
Problems of normally distributed samples are solved using the z-score formula.
In a set with mean and standard deviation
, the zscore of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.
In this problem, we have that:
What guaranteed mileage should the manufacturer announce
Only until the 5th percentile will have to be replaced, which is the value of X when Z has a pvalue of 0.05. So it is X when Z = -1.645.
The manufacturer should announce a guaranteed mileage of 44528 miles