Imagine that a state government is considering the construction of a new state office building to consolidate state operations. Its estimate of the total costs and the total benefits of building a 4- 6-, 8-or 10-story building is shown in the table below. (All figures are in millions of dollars.) Total Cost Total Benefit Project (S) (S) No building 4-story building 7 8 6-story building 16 23 8-story building 24 28 10-story building 34 31 i. Compute the marginal cost and the marginal benefit of the 4-, 6-, 8-, and 10-story buildings. Should the state build a new office building? If so, what size building ii. be the totol honofit

Imagine that a state government is considering the construction of a new state office building to consolidate state operations. Its estimate of the total costs and the total benefits of building a 4- 6-, 8-or 10-story building is shown in the table below. (All figures are in millions of dollars.) Total Cost Total Benefit Project (S) (S) No building 4-story building 7 8 6-story building 16 23 8-story building 24 28 10-story building 34 31 i. Compute the marginal cost and the marginal benefit of the 4-, 6-, 8-, and 10-story buildings. Should the state build a new office building? If so, what size building ii. be the totol honofit

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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1. To resolve the issue of Coronavirus testing, a city decided to set up a plant to producelow cost testing kits. This facility will operate for 12 months and then it will bedismantled. It will cost the city $P to buy the main machine. In addition, the city willspend $45,000 as planning cost before the work commences. The monthly operating andmaintenance cost to run the facility will be $52,500. The city also expects to loseadditional $43,000 every month for the duration of the facility. It is estimated that, thisplant will save taxpayers who will use the testing facility about $15 per usage. The cityexpects 0.5% of its 2 Million citizens to use the facility every month for 12 months. Thefacility will be upgraded at a cost of $40,000 at the end of month 5, $75,000 at the end ofmonth 10, and will then be dismantled at the end of month 12 for $100,000. Afterdismantling, the city will sell the used machine at it salvage value of $72,000. Usingbenefit-cost ratio analysis with an interest…
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Please answer with work on how to complete this problem.
Hyundai Automobile U.S.A. is sponsoringa charity golf tournament to raise monies for achildren’s hospital in Birmingham. There are twopossible venues:• RTJ Golf Resort at Prattville, which has afixed rental cost of $6,810. The hotel providesfor meals and waiters and waitresses to servedrinks and finger foods at $60 per person. Thegreen fees and cart for each person will be $35.• Wynlakes Golf & Country Club, which has afixed rental cost of $2,400 plus a charge of $100per person for its own catering of meals andserving of drinks and finger foods. The greenfees and cart for each person will be $40.Hyundai budgets $5,000 in costs for administrationand marketing for the event. The band will cost afixed amount of $3,000. Tickets to this local community event will be $300 per person. All proceedsfrom the event will be donated to the children’shospital.(a) Compute the break-even point for each venue interms of tickets sold.(b) At what level of tickets sold will the two venueshave the same…
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39. Which one of these is an example of a variable cost? a. None of the choices b. Rent c. Raw material expenses d. Depreciation costs