# Operation Decsions

Operation Decsions

Order Description

Order# 81403981
Concerning Assignment2: Operations Decisions. P
see the attached file and follow up with the requirements.

Please review the equations and interpret your explanations according to the results, and make your answers more specified toward the company not in general.

I have written you the right equations and the correct answers just plot it in the paper and interpret your explanations according to the following results:
Data from the previous assignment.1:
Demand curve QD = 38650 – 42P
Inverse of Demand Curve P = 38650-Q/42 = 38650/42 – Q/42
Since:
TC = 160,000,000 + 100Q + 0.0063212Q2
FC = 160,000,000
VC = 100Q + 0.0063212Q2
AVC = VC/Q = 100Q + 0.0063212Q2 / Q = 100Q + 0.0063212Q
TR = PQ = (38650/42) Q – Q2/42 = 92023Q – 0.00238Q2
MC = ?TC/?Q = 100+2(0.063212) Q
MR = ?TR/?Q = 92023-2(-0.0238) Q
Maximize profit =         MC = MR
100+0.0126424Q = 92023 – 0.0476Q
Therefore:
Q = 13612 units
P = 38650/42 – 13612/42 = 272 cents
TR = P
Q = 27213612 = 3702464 cents
AVC = 100+ (0.0063212
13612) = 186
Therefore:
P>AVC
272 > 186