The second case was much more complex: (1) Qualitatively analyze two different online application methods--their potential strengths and weaknesses. (2) You're given values and asked to determine which method is more profitable. (3) You're asked to determine if the relationship between the two methods and their respective profit rates are contingent on volume.' (4) Different values are given to you in which case it becomes evident that the profitability of each method varies with volume. (5) You're asked to explain the situation qualitatively--why profitability is changing with volume for the two methods. (6) You're asked to quantitatively determine the volume at which there's a shift in profitability between the two measures. (7) If you're unable to immediately set up the system of equations, the interviewer will ask you to draw out the relationships on a graph. (8) You're asked to determine whether the relationships are linear or nonlinear. If you draw the relationships correctly, you're supposed to be able to determine how to set up the system of equations. (9) Once you figure out the value for Q where the profitability of the two options shift, you're asked to determine a strategy over a specific period of time where you know, before the fact, what the volume will be.
Anonymous
This is more challenging than the first question. I would start with a business situation framework and try to identify key components by segmenting the demand and supply side qualitatively. Also, if the quantity (volume) is NOT constant then the profit function will not be linear because profit is a function of quantity and other variables. Thus the curve should be non-linear curve.
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