Jackson and Max are the only inhabitants of a small tropical island. Each drives an old, smoke-belching Oldsmobile. Suppose that
installing a pollution-control device costs $940. Suppose also that for each pollution-control device installed, both Jackson and Max will see their health care costs decrease by $660.
Complete the payoff matrix below, incorporating the information given above. The payoff on the left corresponds to Jackson, and the payoff on the right corresponds to Max. If nobody installs a device, each will receive a payoff of $0.
Max
Install Don't Install
Jackson Install
Don't Install
Complete the payoff matrix below, incorporating the information given above. The payoff on the left corresponds to Jackson, and the payoff on the right corresponds to Max. If nobody installs a device, each will receive a payoff of $0.
Max
Install Don't Install
Jackson Install
Don't Install
1 answer:
Answer:
Answer for the question:
Jackson and Max are the only inhabitants of a small tropical island. Each drives an old, smoke-belching Oldsmobile. Suppose that installing a pollution-control device costs $940. Suppose also that for each pollution-control device installed, both Jackson and Max will see their health care costs decrease by $660.
Complete the payoff matrix below, incorporating the information given above. The payoff on the left corresponds to Jackson, and the payoff on the right corresponds to Max. If nobody installs a device, each will receive a payoff of $0.
Max
Install Don't Install
Jackson Install
Don't Install
is given in the attachment.
Explanation:
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Answer:
Their order quantity will rise but the time between orders will fall.
Explanation:
Let's analyse the EOQ formula:
If Demand increases
The dividend increase, so the quotient increase.
EOQ will rise.
<u>Only options b and c are correct on that statment.</u>
Now let's check the time between order:
If we analyze the increase in demand:
√(2xΔDxS/H)/ ΔD
everything else is keep constant so we have:
√(CxΔD)/ ΔDx
If we use L'Hopital we can conclude this function limit is zero.
Anyway a more easy way to do it will be calculate with a demand of 1000
and then with a demand of 50,000 to notice how much the time between order decrease.
√(1000) / 1000 = 0.031622776
√(51000)/ 51000 = 0.004428074
<u>so we have EOQ increase and days between order decrease.</u>
Now only option B is correct !