Policy Iteration : Probability Distribution and Maximizing Profit

Please see the attached file for the fully formatted problems.

1. A machine in excellent condition earns $100 profit per week, a machine in good condition earns $70 per week, and a machine in poor condition earns $20 per week. At the beginning of any week a machine can be sent out for repairs at a cost of $90. A machine sent out for repairs returns in excellent condition at the beginning of the next week. If a machine is not repaired the condition of the machine at the beginning of next week follows the following probability distribution.

The company wishes to maximize its expected discounted profit over an infinite horizon with  = 0.9. Use an initial policy,

See work on following page. My answer is (see the attached file)

Please see the attached file for the complete solution.

1. A machine in excellent condition earns $100 profit per week, a machine in good condition earns $70 per week, and a machine in poor condition earns $20 per week. At the beginning of any week a machine can be sent out for repairs at a cost of $90. A machine sent out for repairs returns in excellent condition at the beginning of the next week. If a machine is not repaired the condition of the machine at the beginning of next week follows the following probability distribution.

The company wishes to maximize its expected discounted profit over an infinite horizon with α = 0.9. Use an initial policy,

Solution

I would recommend a little different approach. First of ...

Solution Summary

A policy iteration problem is solved. The probability distribution and maximizing profit is provided. The solution is detailed.

A monopolist sells in both Milwaukee and Clevelandand has identical marginal costs of 8 in each market. If the elasticity of demand in Milwaukee is -5 and in Cleveland is -2 what are the profit-maximizing prices in each market? If the product can be easily shipped from one city to the other at a cost of 2 per unit, would this c

Natway, a national distribution company of home vacuum cleaners, recommends that its salespersons make only two calls per day, one in the morning and one in the afternoon. Twenty percent of the time a sales call will result in a sale. Write out the probabilitydistribution for # of sales during a five-day week. What is the mean

Write a C program that synchronizes a parent and a child process in such a way that the output of the program will be:
Child process, iteration: 1
Parent process, iteration: 1
Child process, iteration: 2
Parent process, iteration: 2
Child process, iteration: 3
Parent process, iteration: 3
Child process, iteration: 4
Pa

Fixed Point iteration method.
Use a fixed-point iteration method to find an approximation to that is accurate within 10-4
See attached file for full problem description.

1. A profit-maximizing firm operating in a perfectly competitive market can sell products for $100 per unit. The firm has a cost function represented by:
C(Q) = 1000- 160Q + 10QSqr(10 q squared) . The market demand function for this product is Qd = 500 - 3P.
a.What is the profitmaximizing output for this company?
b.Wh

Please show each step of your solution and tell me the theorems, definitions, etc. if you use any.
Let g(x) = 0.5x + 1.5 and p0 = 4, and consider fixed-point iteration.
a) Show that the fixed point is P=3
b) Show that |P - Pn| = |P - Pn-1|/2 for n = 1, 2, 3...
c) Show that |P - Pn| = |P - P0|/2^2 for n = 1, 2, 3...

Assume a monopolist with the following:
Qd =100-10p
TC = 1 + 2Q
Find the following:
a) Price at profitmaximizing output
b) Profitmaximizing output
c) Total Revenue at profitmaximizing output
d) Total Cost at profitmaximizing output
e)Profit

The problem is from Numerical Methods. Please show each step of your solution and tell me the theorems, definitions, etc. if you use any. Thank you.
Start with P0 = 0 and use Jacobi iteration to find.....
(Complete problem found in attachment)

Assume a monopolist with the following demandand cost relationships.
Q = 400 - 20P
TC = 10 + 5Q + Q^2 (Where "^" means "to the power of")
Calculate the following:
Profitmaximizing price
Profitmaximizing quantity
TR, TC, andProfit at profitmaximizing Q and P.