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AMS recently instituted an in-house recycling program. The benefits of this program include not only the benefits to the environment of recycling but also the goodwill generated by AMS’s leadership in this area. The costs of recycling include all of the energy, labor, and space required to do the recycling. Suppose these benefits and costs are given by: B(Q) = 100Q – 4Q2 and C(Q) = 5Q. (Note that MB = 100 – 8Q and MC = 5).
a. What level of Q maximizes net benefits (assume partial units are possible)?
b. What is marginal benefit at this level of Q?
c. What is marginal cost at this level of Q?
d. What is the maximum level of net benefits?
Illustrate what would occur to the level of domestic investment.
You have just invested a one-time amount of $5,000 in a stock-based mutual fund. This fund should earn (on average) 9% per year over a long period of time. How much will your investment be worth in 35 years?
The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. Describe ..
Wally is an ordinary (one-price) monopoly supplier of widgets. True or False: If Wally’s customers could get together and offer him a one-time payment in exchange for being allowed to buy widgets at a competitive price, then both they and he could be..
In this discussion, you will compare and contrast monetary and fiscal policies. Consider two recent national crisis points: 9/11 and the banking failures of 2008. Was fiscal or monetary policy more immediately responsive to each crisis? Why? Was fisc..
the boards of 2 major telecommunications companies recently agreed to a 16 billion-dollar merger that would create the
Show that consumer surplus when the monopolist innovates is lower than the consumer surplus that obtains when the entrant innovates.
Which plan would you recommend that the Ridpaths choose? Why? What other health coverage options should the Ridpaths consider?
illustrate what is the change in Clean-Springs' profit-maximizing levels of output, price and profit. Explain in words and with graph.
q. research the current value of the following economic indicators gdp cpi nonfarm payroll employment industrial
Evaluate each of the supply and demand scenarios below, How will each affect equilibrium price and equilibrium quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on the magnitudes of the shifts, will the answ..
An excise tax of $2.00 per pound of sugar placed on the suppliers of sugar would shift the supply curve:
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