Calculation question A: The demand for Teddy Bear at U.S. market is p=400-0.25q (p: the price; q: quantity of Teddy Bear

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Calculation Question A The Demand For Teddy Bear At U S Market Is P 400 0 25q P The Price Q Quantity Of Teddy Bear 1 (175.8 KiB) Viewed 30 times

Calculation question A: The demand for Teddy Bear at U.S. market is p=400-0.25q (p: the price; q: quantity of Teddy Bear). A toy producing company, Teddy Inc., is the only manufacturer in Hong Kong for this product. The cost function for producing Teddy Bear is C=0.2q +2q+10 (q: the number of Teddy Bears, cost in HK$). The shipping cost from HK to US West Coast Port (WP) is HK$4 each, to East Coast port (EP) is about HK$5 each. There are two distribution centers in the US for this product, one for the west part of US (WDC), and the other for the east part (EDC). Each distribution center handles half of its national demand. The unit cost for rail transportation from each port to the center at the same side is $1, and $3 to the center at the other side. The port costs for one Teddy Bear are the same at two US ports, which is about HK$1.5 each. The port cost at Hong Kong is about HK$2 each. Assume each distribution center handles half of the national demand. WDC $1.5 EDC $1.5 EP WP $2 1. How many Teddy Bears to produce? 2. What is the total cost for so many Teddy Bears? 3. What is the demand for each Coastal ports? 4. What is the total profit the export company can earn?