I argued with my friend for 20 minutes tonight about this equation

[Baked]

His mom goes to college.

 

[giantpinkbunnyhead]

You know what... after thinking about how dumb this "friend" is... I have no choice but to call shens on this whole thing!

Need links to proof of his dumbass-ness. And pics. That's ATOT policy!

 

[krunchykrome]

Originally posted by: giantpinkbunnyhead
You know what... after thinking about how dumb this "friend" is... I have no choice but to call shens on this whole thing!

Need links to proof of his dumbass-ness. And pics. That's ATOT policy!

LOL, I could put on his AIM screen name but that would just be wrong. Im not making this up, you think I would take the time to make this up at 2am on a Tuesday night for the hell of it? I'd rather be sleeping, but this was such an extreme situation, I just had to tell you guys about it.

 

[ch33zw1z]

all that money gone to waste, you should hit him

 

[oboeguy]

Originally posted by: DaShen

Originally posted by: UncleWai
When you combine 50x and -20x, you lost the information about the firm's cashflow. I think that's what got him mixed up when he said that.

Good point. But it still is pretty straightforward

No, not a good point necessarily. Either someone is going to "solve for x" or use the function as an objective for some mathematical programming model (decision science said the OP), and in both cases simplification is necessary step. OP's friend is incredibly clueless if he can't understand that 1) addition commutes and 2) the profit function could have been written the terms in a different order in the first place!

Speaking of that, what do you call a fruit that commutes?






An Abelian grape! (funny to those who've stuided group theory )

Edit: typo

 

[dullard]

Originally posted by: oboeguy
OP's friend is incredibly clueless if he can't understand that 1) addition commutes and 2) the profit function could have been written the terms in a different order in the first place!

You missed the most fundmental point #3. The profit equation can be rewritten as:

(Profit) = (Direct profit per unit) * (number of units) - (Fixed costs).

Direct profit per unit is defined as revenue per unit minus variable direct costs per unit.

P = (50-20) * x - 8000

In fact, the poriton (50-20) = 30 is probably THE most important part of the entire lesson. Not only can they be combined, they SHOULD be combined. Why? In many business decisions, the fixed costs should not be considered. For example, if you are stuck in a lease for 5 years at $10000/month yet you can sell your goods at a direct profit of $9000, should you close shop even if you are losing money? No. Because staying in businees loses you $1000/month, but closing up costs you $10000/month. The reason to stay in business is that the direct profit is positive.

 

[oboeguy]

LOL dullard, that's not missing the point that's being lazy. Thanks for completing my post for me.