MC MB 25 50 75 100 Trucks (per day) i. What is the marginal benefit and marginal cost of producing 25th truck? ii. Should the 25th truck be produced? Why or why not. Marginal cost and marginal benefit (cars per truck)
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- The state of Colorado requires oil and gas companies who use fracking techniques to retune the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefits (in dollars) of this policy. Calculate the marginal cost and the marginal benefit at each quantity (acre) of land restored. See Production. Costs and Industry Structure if you need a refresher on how to calculate marginal costs and benefits. If we apply marginal analysis, what is the optimal amount of land to be restored?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?Use the following marginal benefit and marginal cost functions for activity A: MB = 100 - 5AMC = 20 + 3A The fifth unit of activity Awill increase net benefits by 75. reduce net benefits by 35. decrease net benefits by 40. increase net benefits by 40. reduce net benefits by 75.
- Problem 1. During your first month as an employee at Greenfield Industries (a large drill-bitmanufacturer), you are asked to evaluate alternatives for producing a newly designed drill bit on aturning machine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previous employeewho could not finish the analysis, but she has given you the following information: An old turningmachine valued at $350,000 exists (in the warehouse) that can be modified for the new drill bit.The in-house technicians have given an estimate of $40,000 to modify this machine, and they assureyou that they will have the machine ready before the projected start date (although they havenever done any modifications of this type). It is hoped that the old turning machine will be able tomeet production requirements at full capacity. An outside company, McDonald Inc., made themachine seven years ago and can easily do the…A firm has the following benefits and costs equations: B(Q) = 450Q - 26Q² and MC(Q) = 136Q The Q that maximum total benefit = ?1. A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer should add fertilizer if it costs less than A. $100 per pound. B. $20 per pound. C. $80 per pound. D. $40 per pound. E. $60 per pound. 2. I have previously taken (select all that apply) A. ECN 200 - Contemporary Economic Issues. B. ECN 201 - Principles of Macroeconomics. C. ECN 202 - Principles of Microeconomics. D. None of the above.
- to treat a sore back Kyoko undertakes a course of physical therapy.Kyoko's marginal benefit from her first physical therapy session is $250 from her second its $225 , from her third its $175 anf from her its $100. physical threapy sessins cost $175 each. assuming kyoko's final physical threapy session will earn her zero consumer surpus, kyoko will have _ physical threapy sessions and her total consumer surpus will be_ A .four, $0 B. three, $100 c. four, $125 d. three, $125Intermediate MicroeconomicsProblem Set 10.Submission options:• in person during lectures or TA sessions;• in Xiaoye Liao’s mail box at 19 West 4th, 6th Floor;• (less recommended) e-mail Xiaoye Liao atxl775@nyu.edu– in that case, be sure to use the subject line: “Submission Problem Set 10â€.Exercise 1Consider a game of rock-scissor-paper. There are two players, player 1 and player 2,and the winner receives $1 from the loser (if they draw, nothing happens). They playthis game simultaneously.1. What kind of game is this? Express this game in normal form.2. What are the set of possible actions and strategies?3. Find all Nash equilibria of this game.Exercise 2Consider a game represented by the following payoff matrix. Find all pure strategyNash equilibria. UMD LCR?10, 0 ?10, ?1 ?10, ?1?8, ?8 0, ?102, ?14, 57, ?101, 1 Exercise 3Consider a game represented by the following…Dana spends $10000 on remodelling a storefront that she thenopens as a shoe store. Her business has not been very successful, and she needs an additional $3000 to keep the shoe store open. Which of yhe following is TRUE? A) the $10000 Dana spent on remodelling represents a part of the total vatiable cost of her business. B) the $3000 represents her marginal costs of production. C) the $10000 Dana spent on remodelling is a fixed cost of her business. D) the $3000 Dana needs to keep the deli open represents her total fixed cost.
- A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta areaor Bekasi. Each of these area options has a local supplier providingThe price quote for the oil is detailed in the table below. area fixed cost variabel cost Bogor 5.500.000 55.046.00 Jakarta 11.500.000 35.500.00 Bekasi 21.500.000 15.500.00 Question:A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area.b. Sketch a crossover diagram that illustrates these conditionsc. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?A publishing company sells 400,000 copies of certain books each year. It costs the company $1 to store each book for a year. Each time it must print additional copies, it costs the company$500 to set up the presses. How many books should the company produce during each printing in order to minimize its total storage and setup costs? (a) The company should producen______books each printing in order to minimize costs.A movie theater shows films for a community of 10000 people. Right now, the price per ticket is $17.50. In the past, when they increased or decreased the price per ticket, they discovered that for every dollar (or fraction) that the price was increased or decreased, the attendance decreased or increased proportionally by 200 people. The theater owner pays the Film Distribution Company $10 (incremental cost) in royalties per person whoviews the film. Find a. The willingness to pay distribution of the movie goers. b. The average price they would be willing to pay. c. The price per ticket that maximizes revenue. d. Should the theater owner increase or decrease the price per ticket if she wants to maximize contribution? e. Find the consumer surplus if the tickets are priced at the price that maximizes contribution. Please complete in excel showing formulas on how it was completed