5. Marginal Analysis. In each of the situations below you are asked to make a business decision justified by an analysis of a function which models some aspect of business. Your answer should indicate a recommended course of action along with a single sentence justifying or explaining your recommendation. (a) Suppose the monthly profits (in thousands of dollars) for a particular franchise business are well modeled by: P(t) = 10t – 60 %3D (t is measured in months) Should an investor start a new business with a short term (6 month loan), or a longer term (1-2 years) loan?
5. Marginal Analysis. In each of the situations below you are asked to make a business decision justified by an analysis of a function which models some aspect of business. Your answer should indicate a recommended course of action along with a single sentence justifying or explaining your recommendation. (a) Suppose the monthly profits (in thousands of dollars) for a particular franchise business are well modeled by: P(t) = 10t – 60 %3D (t is measured in months) Should an investor start a new business with a short term (6 month loan), or a longer term (1-2 years) loan?
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.3P
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Transcribed Image Text:No need to solve anything by graph, mainly
derivative stuff. Justify answer in 5a with a short
explanation!
5. Marginal Analysis.
In each of the situations below you are asked to make a business decision justified by
an analysis of a function which models some aspect of business. Your answer should
indicate a recommended course of action along with a single sentence justifying or
explaining your recommendation.
(a) Suppose the monthly profits (in thousands of dollars) for a particular franchise
business are well modeled by:
P(t) = 10t – 60
(t is measured in months)
Should an investor start a new business with a short term (6 month loan), or a
longer term (1-2 years) loan?
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