a: if price is zero, then q=1600
how many to order is q.
then, cost to order from A is 1200+3200=4400
cost to order from b=4*1600=5200
order from A.
dR/dq=dP/dq q + P- dCost/dq
now, for supplier A
dR/dq=0=-1/200 q + 800-q/200 -2
For supplier B
dR/dq=0=-q/200 +800-q/200 -4
check that, it is late at night.
Yes the B: R=PQ-cost is what I was missing at first, but after plugging it in and checking, it's correct. Thanks
You do great work when it's late!
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