Marlon Audio Company manufactures videotapes. The desired speed of its model SF2000 is 7 inches per second. Any deviation from this value distorts pitch and tempo, resulting in poor sound quality. The company sets the quality specification to 7 ± 0.30 inch per second because an average customer is likely to complain and return the tape if the speed is off by more than 0.30 inch per second. The cost per return is $41. The repair cost before the tape is shipped, however, is only $3 per tape.
Required:
1. Compute L(x) if x is 4.12 inches per second.
2. Estimate the tolerance for the firm to minimize its quality-related cost (loss).
(For all requirements, round your intermediate calculations to the nearest whole dollar amount. Round your answers to 4 decimal places.)

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms.if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.