Expected price per product, Managerial Economics

 

Airbus

Boeing

Demand

P = 182.868 - 0.0003Q

P = 198.6592 - 0.00013Q

TVC Curve

TVC = 104.8822Q - 0.001Q^2 + 0.09Q^3

TVC = 25.8678Q - 0.00023Q^2 + 0.4Q^3

 

In addition, the joint group analysis determined the market would bear a price per plane somewhere within the following parameters:

Table 1

Price per plane
(million $)

Probability

125

.25

175

.25

225

.5

 

 First estimate the price per plane using the estimated prices and probabilities given in Table 1.

Part 2:

Price per plane

(million $)              Probability

-------------------------------------------

125                        .25

175                     .25

225                        .50

 

The estimated price per plane is given as a weighted average of all possible prices, where the weights are given by the respective probabilities of each price

So expected price per plane = (125*0.25)+(175*0.25)+(225*0.5) = $187.5 million

 

Posted Date: 7/13/2012 4:08:15 AM | Location : United States







Related Discussions:- Expected price per product, Assignment Help, Ask Question on Expected price per product, Get Answer, Expert's Help, Expected price per product Discussions

Write discussion on Expected price per product
Your posts are moderated
Related Questions
Cheap Labour   It is often argued that the economy must be protected from imports which are produced with cheap, or 'sweated", labour.  Some people argue that buying foreign

Perfect Competition   The model of perfect competition describes a market situation in which there are: i.         Many buyers and sellers to the extent that the supply of

what are the Sources of public debt

How does economic theory contribute to managerial decisions

Methods which rely on quantitative data: Rule-based forecasting Data mining Quantitative analogies Discrete event simulation Neural networks Extrapo

Analysis of unemployment in relation to economics

Disguised unemployment Situation where some people are employed apparently, but if they are withdrawn form this job, total production remains the same. In most developing coun

LONG RUN OUTPUT In the LR whether or not the firm makes profit will depend on the conditions of entry.  For example, when surplus profits exist, there will be new entrants bec

Using the CPS data, set the sample to women only and regress lnwage on education & MARRIED (which is 1 if married and 0 if not) and 1-MARRIED. Give a 95 percent confidence interval

Real and nominal wages Wages are wanted only for what they will buy, real wages being wages in terms of the goods and services that can be bought with them.  Nominal wages