Maurice Tutor

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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Algebra Posted 30 Jul 2017 My Price 4.00

risky investment

  1. An entrepreneur plans to convert a building she owns into a video-game arcade. Her main decision is how many games to purchase for the arcade. From survey information, she projects total revenue per year as R = 10,000Q - 200Q 2 , where Q is the number of games. The cost for each game (leasing, electricity, maintenance, and so on) is $4,000 per year. The entrepreneur will run the arcade, but instead of paying herself a salary, she will collect profits. She has received offers of $100,000 to sell

her building and a $20,000 offer to manage a rival’s arcade. She recognizes that a normal return on a risky investment such as the arcade is 20 percent.

  1. As a profit maximizer, how many games should she order?

  2. What is her economic profit?

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 12:07 AM My Price 4.00

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