MegaSports,Inc

question 24

Essay

MegaSports,Inc.produces two high-priced metal baseball bats,the Slugger and the Launcher,that are made from special aluminum and steel alloys.The cost to produce a Slugger bat is $100,and the cost to produce a Launcher bat is $120.We can not assume that MegaSports will sell all the bats it can produce.As the selling price of each bat model - Slugger and Launcher - increases,the quantity demanded for each model goes down.
Assume that the demand,S,for Slugger bats is given by
S = 640 - 4P_S
and the demand,L,for Launcher bats is given by L = 450 - 3P_L where P_S is the price of a Slugger bat and P_L is the price of a Launcher bat.The profit contributions are
P_S S - 100S for Slugger bats and P_L L - 120L for Launcher bats.Develop the total profit contribution function for this problem.

Recognize the legal implications of strict product liability.

Understand discrimination prohibitions in credit applications.

Know the FTC's rules and regulations related to sales and advertising practices.

Explain the concept of "risk-adaptability" in legal decisions.

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Definitions:

Trade

The action of buying, selling, or exchanging goods and services between people or countries.

Secretary Of State

A high-ranking official in the U.S. government responsible for foreign affairs, traditionally regarded as the top cabinet post.

Hamilton

Alexander Hamilton, a founding father of the United States, known for being the first Secretary of the Treasury and founding the nation's financial system.

Jay's Treaty

A 1795 treaty between the United States and Great Britain that averted war, resolved issues remaining since the Treaty of Paris of 1783, and facilitated ten years of peaceful trade between the United States and Britain.