You invent a new pet care product – a rubber mat that keeps dogs from flying off the center console when their owner hits the brakes. you successfully file for a patent and bring the product to market. you can get as many of the units produced as you’d like at a cost of $8 each. in other words, the cost function is given by = you pay for a market research firm to estimate the market demand for your product. the econometricians there estimate that the demand for your product is given by = − your partner says that demand seems really high, and suggests that you charge $75 per unit. you aced managerial economics but your partner didn’t – you are skeptical that she is guessing at a price and not maximizing profits.

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; sales of books;