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Re: KPA500 and KAT500 Ports

Posted by Gary Gregory on Jul 14, 2011; 4:12am
URL: http://elecraft.85.s1.nabble.com/KPA500-and-KAT500-Ports-tp6574422p6581833.html

I am so confused now I will just stick with the manual tuner with 3 antenna
ports.

Gary

On 14 July 2011 13:46, Tony Estep <[hidden email]> wrote:

> Suppose you really wanted to decide the best design strategy for a maker of
> antenna tuners. You might think as follows:
>
> All potential buyers have at least one antenna. Some have two, some three,
> etc. As you add more outputs on the back of the tuner, you increase
> potential sales, but you also increase costs. Note importantly that adding,
> for example, a third output increases the cost of units sold to hams who
> have only one or two antennas. Therefore, adding outputs may add some
> customers among hams with many antennas, but will also lose some sales to
> hams who don't want to pay for unused outputs. Moreover, adding outputs
> lowers profit margin.
>
> The number of units sold is some function of this increment to unit cost.
> And of course, total revenues is unit cost * number of units.
>
> The problem is to optimize profit: quantity * (price - unit cost).
> Recalling
> that quantity depends in part on unit cost, we can write this out and
> differentiate with respect to the cost of the added outputs. The point at
> which that derivative = 0 is the optimum amount to spend on extra outputs.
>
> In order to do this exercise with real numbers, one would have to have some
> idea of the elasticity of demand with respect to price, a number that may
> not necessarily be easy to pin down. Nonetheless, the point is to provide a
> better framework for decision-making.
>
> Tony KT0NY
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