Consider the following scenario to understand the relationship between marginal and average values. Suppose Crystal is a professional basketball player, and her game log for free throws can be summarized in the following table. Fill in the columns with Crystal's free-throw percentage for each game and her overall free-throw average after each game. Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage 8/10 80 14/20 15/25 18/30 26/40 Game 1 2 3 4 5 8/10 6/10 1/5 3/5 8/10 80 On the following graph, use the orange points (square symbol) to plot Crystal's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot her overall average free-throw percentage after each game. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.

Consider the following scenario to understand the relationship between marginal and average values. Suppose Crystal is a professional basketball player, and her game log for free throws can be summarized in the following table. Fill in the columns with Crystal's free-throw percentage for each game and her overall free-throw average after each game. Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage 8/10 80 14/20 15/25 18/30 26/40 Game 1 2 3 4 5 8/10 6/10 1/5 3/5 8/10 80 On the following graph, use the orange points (square symbol) to plot Crystal's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot her overall average free-throw percentage after each game. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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13 3.2 question information to go with the picture is below: On the following graph, use the orange points (square symbol) to plot Frances’s free-throw percentage for each game individually, and use the green points (triangle symbol) to plot her overall average free-throw percentage after each game. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. The first three drop downs are rising or fallling. The last drop down is at it's maximum, at it's minimum or when the ATC is ay 0.
64. (This problem assumes knowledge of the basic rulesof baseball.) George Lindsey (1959) looked at boxscores of more than 1000 baseball games and foundthe expected number of runs scored in an inning foreach on-base and out situation to be as listed in the fileP09_64.xlsx. For example, if a team has a man on firstbase with one out, it scores 0.5 run on average untilthe end of the inning. You can assume throughout thisproblem that the team batting wants to maximize theexpected number of runs scored in the inning.a. Use this data to explain why, in most cases,bunting with a man on first base and no outs isa bad decision. In what situation might buntingwith a man on first base and no outs be a gooddecision?b. Assume there is a man on first base with one out.What probability of stealing second makes an attempted steal a good idea?
5. 7) Fifteen years ago, the town of Easton decided to increase its annual spending on education so that its high school graduates would be able to earn higher wages. Now Easton has asked you to evaluate the effectiveness of the spending increase. Their data show that before the spending increase, the average salary of recent high school graduated was $25,000 and that now the average salary has risen to $28,500. Fortunately for your analysis a neighboring community did not change its annual spending on education. In the other town 15 years ago high school graduates earned an average of $22,500, and now the average is $23,750. a) Use a differences-in-differences estimator to determine whether Easton’s spending increase potentially caused the wages of high school graduates to rise. b) What underlying assumption do you have to make in order for your estimate to be valid? What might cause that underlying assumption to not be valid?
HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?
The information on three different technologies named as q, v and x is listed in the table below. Note that all of these technologies use different combinations of two types of factors of production, labor and capital, to produce 1000 units of output. Consider the first scenario where the per unit prices of the inputs, labor and capital are $50 and $25 respectively. Technology No of Labors Capital (tons) Cost value ($) A 10 50 B 30 20 C 50 10 Now imagine that a discovery has been made which has led to labor advancements leading to a reduction in per unit price of labor to $10, ceteris paribus. Which technology will a typical firm adopt under these changed circumstances and why? Using the value of costs found, what is the value of the economic rent for this firm?
a. Differentiate between the following as used in economics: i. Diminishing Marginal Utility and Diminishing marginal returns. ii. Specific tariff and Ad Valorem tariff. iii. Explicit and implicit costs. b. Assume you own and manage your manufacturing unit where you receive total revenue of$50 000. Other relevant financial information is given below: Inputs Cost($)Raw material 20 000Labour 8 000Rent 10 000Interest 5 000 i. Calculate Accounting profit. ii. If your other employment opportunity is to earn P10 000 per month working at a softwarecompany, what will be your economic profit? Would you be prefer to continue with theBusiness? Explain. c. Identify any three (3) features a monopoly market structure.
Environmental Crime and Punishment Economists tend to view the decision by an individual to comply with an environmental law in terms of economic motivations. While good citizenship—obeying the law simply because it is the law—certainly plays a role in affecting behavior, it is also useful to analyze compliance decisions in terms of benefits and costs. Figure 14.3 illustrates a hypothetical marginal cost–marginal benefit analysis for a manager in a coal-fired power plant who has to decide what percentage of the time he or she plans to be in compliance with the sulfur dioxide emission standards on his or her state permit. The benefits that come from complying with environmental laws are essentially the avoided costs of punishment: monetary costs (fines and penalties), a damaged reputation (both for corporations and individuals), and the fear of jail terms. The expected benefits depend on two factors: the magnitude of the punishment if imposed and the likelihood of…
5. (Ancillary Revenue) Fenerbahçe Stadium seats 60,000 people and the demand curves for studentsand for the general public as given below: Now assume that, on average, each member of the general public will consume $20 worth ofconcessions, resulting in a $10 contribution margin, while each student only consumes $10, resulting ina $5 contribution margin. Assuming no cannibalization, what are the prices for students and the generalpublic that maximize total contribution margin (including, of course, ticket revenue)?
26. Suppose that you can schedule a worker for up to 4 hours per day. The total benefit andtotal cost functions are B(H) = 300H −20H2 and C(H) = 500H +60H2. The correspondingformulas for marginal benefit and marginal cost are MB(H) = 300 − 40H and MC(H) =500 + 120H. For how many hours should you schedule the worker?(a) 1.25 hours(b) 0.8 hours(c) 4 hours(d) 0 hours
Suppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $745,000. The following table states each person's willingness and ability to purchase a parcel. Person Willingness and Ability to Purchase (Dollars) Charles 900,000 Dina 810,000 Gilberto 770,000 Juanita 720,000 Lorenzo 690,000 Neha 680,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. Charles Dina Gilberto Juanita Lorenzo Neha Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $732,500. This fourth…
(1) Patricia owns a cleaning business with Sarah. They both have other jobs and are trying to determine the number of hours to work at the cleaning business. The following payoff matrix shows their daily incomes depending on the number of hours they work at the cleaning business. If Patricia chooses to work full time and Sarah works part time, what will each earn in daily income? A-Patricia will earn $60; Sarah will earn $60. B-Patricia will earn $50; Sarah will earn $80. C-Patricia will earn $80; Sarah will earn $50. D-Patricia will earn $55; Sarah will earn $55. E-Indeterminate (2) Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on the other's actions. Both companies are considering opening retail outlets to increase their profits. The payoff matrix shows the profits of the companies in millions of dollars if they choose to open retail outlets. The government imposes a new $5…
Suppose you manage a large company’s marketing department and are responsible for deciding whether or not to advertise in the Super Bowl. Your team of analysts estimate that for each advertisement, your firm would generate $6 million in additional revenue for the company. It cost $7 million to run a 30-second advertisement. Therefore, your company would expect to lose $1 million in profit for each advertisement. Explain why it could still be worthwhile to purchase an advertisement, even though you know in advancethat your company would lose $1.5 million in profit