Meena distributors has an annual demand for an airport metal detector of 1 comma 380 units. the cost of a typical detector to meena is $400. carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $23 per order. if purushottama meena, the owner, orders in quantities of 300 or more, he can get a 6% discount on the cost of the detectors. should meena take the quantity discount? what is the eoq without the discount?

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?