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Title: Trisha's Fashion Boutique is considering a profit sharing arrangement with her employees. ... Post by: Satsume on Oct 25, 2017 Trisha's Fashion Boutique is considering a profit sharing arrangement with her employees. Currently, the employees receive an annual bonus. Trisha can sell all the output she produces for $150 per unit. Trisha's total cost function (including bonus payments to employees) is: TC(Q) = 75Q + 2.5Q2. The marginal cost function is: MC(Q) = 75 + 5Q. The profit sharing plan would pay employees 30% of profits. However, due to greater cost saving initiatives from employees, Trisha's total cost function becomes: TC(Q) = 50Q + 2Q2. The relevant marginal cost function becomes: MC(Q) = 50 + 4Q. Which plan offers Trisha the greatest profits for herself?
Title: Re: Trisha's Fashion Boutique is considering a profit sharing arrangement with her employees. ... Post by: Bart_arg on Oct 25, 2017 Content hidden
Title: Re: Trisha's Fashion Boutique is considering a profit sharing arrangement with her employees. ... Post by: BorreroSebastia on Nov 30, 2020 thank you
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