Independent critical evaluation of a planning model Essay

Independent critical evaluation of a proviso model - Essay ExampleWhen we differentiate and as gull the derivative to zero.Hence, and , so So acquire is maximised when the fruit (q) is set to 10Now, let us consider how we plenty investigate the model as a case accept.The profit model is made up of 2 distinct sections i.e. Revenue and Costs. Revenue is establish upon the unidimensional take away comparability and linear demand, consists of an intercept term and a slope term.Costs on the other hand, consist of two distinct entities i.e. a Fixed Cost (the apostrophize of maintaining a line of business irrespective of level of output) and, a Variable Cost (the additional costs associated with changes in output).If we consider Revenue, thus we are considering the product of the linear demand equation and output (q). We know that the linear demand equation consists of an intercept term and a slope term.Hence by creating changes in the coefficients associated with the linear dem and equation, we can create changes in the Revenue equation. So, we can change the value of the Intercept term and/or the list term.Changes in either go out create changes in the Revenue equation.Creating changes in the revenue equation will ultimately create changes in the Profit equationSimilarly, the cost equation consists of a fixed cost and a variable cost. Changes in either will cause changes in the Profit equation.Hence, the case study analysis is set up as follows we will consider changes in the Fixed Cost, then changes in the Variable Cost, followed by changes in the intercept term and then in the slope term of the linear demand equation.Speaking about changes in the Fixed Cost direct at graphs changes. Simply vertically moves the position of the graph of the equation. In the case of the Profit graph, a ebb in the... ), i.e. the minus sign outside the brackets of the TC effectively changed the sign of every term within the brackets when the brackets were removedSo 000 i s our profit equation Notice how it represents a quadratic equation with a negative sign in preceding of the squared term. Such an indication tells us that we are looking at a MAXIMUM point. Let us plot a graph of our profit equationCosts on the other hand, consist of two distinct entities i.e. a Fixed Cost (the cost of maintaining a business irrespective of level of output) and, a Variable Cost (the additional costs associated with changes in output).Hence by creating changes in the coefficients associated with the linear demand equation, we can create changes in the Revenue equation. So, we can change the value of the Intercept term and/or the Slope term.Hence, the case study analysis is set up as follows we will consider changes in the Fixed Cost, then changes in the Variable Cost, followed by changes in the intercept term and then in the slope term of the linear demand equation.Speaking about changes in the Fixed Cost look at graphs changes. Simply vertically moves the position of the graph of the equation. In the case of the Profit graph, a decrease in the value of the fixed costs moves the profit graph upwards (and vice versa).Hence, the constant set (-2,000 and 150 in this case) are technically