Exploring Macroeconomics
8th Edition
ISBN: 9781544363332
Author: Robert L. Sexton
Publisher: Sage Publications
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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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Students have asked these similar questions
c. 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?
The street is busy.
i.
ii.
The street is empty and it was 3 a.m.
ii.
You are in a huge hurry.
iv.
A police officer is standing 100 feet away.
v.
The closest crosswalk is a mile away.
vi.
The closest crosswalk is 10 feet away.
Think of an economic
decision you made recently
wherein the benefit
outweighed the cost (or
the cost outweighed the
benefit).
Question 7
Cindy is planning to sell her house. She is considering making two upgrades for the house before selling it. Painting the whole house will cost $15,000. Replacing the old windows will cost $25,000. Cindy’s real estate agent told her that the new painting will increase the value of the house by $12,000 and the new windows will increase the value of the house by $28,000. What is the marginal cost and marginal benefit of painting the whole house?
Marginal cost Marginal benefit
A: $12,000 $15,000
B: $15,000 $12,000
C: $3,000 $3,000
D: $3,000 -$3,000
Chapter 2 Solutions
Exploring Macroeconomics
Knowledge Booster
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