My Math Forum  

Go Back   My Math Forum > College Math Forum > Calculus

Calculus Calculus Math Forum


Reply
 
LinkBack Thread Tools Display Modes
December 31st, 2009, 12:11 PM   #1
Newbie
 
Joined: Dec 2009

Posts: 4
Thanks: 0

Maximizing Profits Problem



Looking for some guidance for this problem, I will add information as I go along.

I think the steps are:
1) Develop a formula that represents the cost
2) Find critical points
3) evaluate the critical points

What I am unsure of is am I allowed to vary the length of the highway and gravel road? I'm asked to maximize profit or I can minimize cost. Is this cost of operating or of construction as well? If it's of operating only, I can easily deduct the construction cost from the inital 7.8 million. Also if it's of operating only, can I not say operate as fast as possible to reduce hours?

Please advise
thank you.
matt1234 is offline  
 
December 31st, 2009, 08:56 PM   #2
Senior Member
 
Joined: Jan 2009
From: Japan

Posts: 192
Thanks: 0

Re: Maximizing Profits Problem

Is this the entirety of the problem? I have exactly the same questions as you. Either there's more to this problem than what's posted or it's a badly constructed problem.
cmusick is offline  
January 2nd, 2010, 06:15 AM   #3
Newbie
 
Joined: Dec 2009

Posts: 4
Thanks: 0

Re: Maximizing Profits Problem

Hi,
This is the entire problem. I have nothing more.

Im confused on the location of the road, if im allowed to move the gravel road or not.
matt1234 is offline  
January 2nd, 2010, 06:32 AM   #4
Senior Member
 
Joined: Jan 2009
From: Japan

Posts: 192
Thanks: 0

Re: Maximizing Profits Problem

I would assume, then, that you're allowed to build wherever you like, if you're not permitted to ask the person who assigned this question. I would not assign such a problem, but if I did by mistake, you'd get full credit for making the assumption (and stating that you are) and then solving the problem.
cmusick is offline  
January 2nd, 2010, 06:58 AM   #5
Newbie
 
Joined: Dec 2009

Posts: 4
Thanks: 0

Re: Maximizing Profits Problem

Thank you for your reply, i think i will do each of these methods since i cant find which one is correct :

matt1234 is offline  
January 2nd, 2010, 07:07 AM   #6
Senior Member
 
Joined: Jan 2009
From: Japan

Posts: 192
Thanks: 0

Re: Maximizing Profits Problem

I would skip 2 -- it's what's called a "completely dominated" strategy. Case 1 is better than any of case 2 since the highway is cheaper both to pave and to travel on.
cmusick is offline  
January 3rd, 2010, 12:56 PM   #7
Newbie
 
Joined: Dec 2009

Posts: 4
Thanks: 0

Re: Maximizing Profits Problem

I used number 3, if you look at 1 and 3 closely you will notice that after minimizing 3, 1 is a possibility.
Although, after solving the problem 1 is not the answer.
matt1234 is offline  
January 3rd, 2010, 04:41 PM   #8
Senior Member
 
Joined: Jan 2009
From: Japan

Posts: 192
Thanks: 0

Re: Maximizing Profits Problem

Yes. I would personally "solve" for 1 just because the instructions are ambiguous at best, not because the technique used to optimize 3 would not find 1 if it were the best answer.
cmusick is offline  
Reply

  My Math Forum > College Math Forum > Calculus

Tags
maximizing, problem, profits



Thread Tools
Display Modes


Similar Threads
Thread Thread Starter Forum Replies Last Post
Monopoly profits Pvunderink Economics 2 April 25th, 2014 07:16 AM
Marginal Profits?! noob2themax Calculus 3 June 21st, 2011 11:21 PM
I need help with maximizing profits problem BlahBlah1 Algebra 2 August 30th, 2010 10:52 AM
Maximizing Profits smoothwhyte Algebra 7 September 16th, 2007 04:38 PM
Monopoly profits Pvunderink Algebra 0 December 31st, 1969 04:00 PM





Copyright © 2018 My Math Forum. All rights reserved.