Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 2, Problem 19P
To determine
(a)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation is also to be determined.
To determine
(b)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
To determine
(c)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
To determine
(d)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
To determine
(e)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
To determine
(f)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
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Imagine that you are trying to decide whether to cross a street without using the designated crosswalk at the traffic signal. What are the expected marginal benefits of crossing? The expected marginal costs? How would the following conditions change your benefit–cost equation?
.. Imagine that you are trying to decide whether to cross a street without using the designated crosswalk at the traffic signal. What are the expected marginal benefits of crossing? What are the expected marginal costs? How would the following conditions change your benefit cost equation?
The street was busy.
The street was empty, and it was 3:00 A.m.
you were in a huge hurry.
There was a police officer 10 metres away.
The closest crosswalk was 1 kilometre away.
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Can you please show the detailed steps involved that took you to the final answers so that I can understand?
1.Suppose the marginal costs (MC) of reading are constant & the marginal benefits (MB) of reading decline (over time). Initially, the MB of Reading are greater than the MC. Draw the MB curve and MC curve of studying, & identify the efficient amount of reading. Then explain why the efficient point is the point at which the net benefits of reading are maximized. ________________________________________________2. Using the diagram you drew in question 1, lower the marginal costs of reading and identify the new efficient amount of reading. Also, identify the additional net benefits derived as a result of the lower marginal cost of reading.
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