agec 352 hmwrk 2

agec 352 hmwrk 2 - Homework 2 Due Date 1 In figure 1 above...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework 2 Due Date: January 25, 2010 1) In figure 1 above we mapped the model in words and symbols using an influence  diagram. What addition would we need to make to that diagram when we change  the quantity of pies demanded and sold (Q) from an exogenous to an endogenous  variable? To change the diagram to an endogenous variable we need to extend it to the demand equation we have looked at. 2) In Figure 3 above three graphs are plotted for Revenue, Costs, and Profits. The  plot for profits can be used to find the correct price to charge by finding the  highest point it reaches. How would you find the highest profit using this graph if  it only had revenue and costs plotted? You can look at the graph and see where revenue is the greatest over costs then to check to make sure the graph interpretation was correct you would subtract your predicted cost from your predicted revenue from the graph to see if the price you
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/01/2010 for the course AGEC 352 taught by Professor Staff during the Spring '08 term at Purdue.

Page1 / 2

agec 352 hmwrk 2 - Homework 2 Due Date 1 In figure 1 above...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online