12. A chicken nugget manufacturer is balancing the fines of making consumers sick against the costs of
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12. A chicken nugget manufacturer is balancing the fines of making consumers sick against the costs of increasing the quality of their ingredients. They're trying to minimize that cost and have estimated the cost of quality is given as: C(Q) = F/(1+Q) + KQ Where Q is quality selected, F is the size of the fine and K is the cost of improving quality. For F = 2 and K = 0.222, what is the optimal level of quality?
the answer is 2
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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