In constrained minimization problem

Assignment Help Business Economics
Reference no: EM131173109

In a constrained minimization problem, PA = $500, PB = $100, MB(A) = 50, and MB(B) = 60. If one unit of A is taken away, how many units of B must be added to keep total benefits constant?

a. If one unit of A is taken away, how many units of B must be added to keep total benefits constant?

b. By how much is total cost reduced by the substitution in part a?

c. If the substitution in part a continues until equilibrium is reached, what will be the equilibrium relation between MB(A) and MB(B)?

Reference no: EM131173109

Questions Cloud

Microprocessor speed and power dissipation : DATA SET E Microprocessor Speed (MHz) and Power Dissipation (watts) (n = 14 chips) Chip Speed (MHz) Power (watts) 1989 Intel 80486 20 3 1993 Pentium 100 10 1997 Pentium II 233 35 1998 Intel Celeron 300 20 1999 Pentium III 600 42 1999 AMD Athlon 600 5..
Events may increase the marginal revenue product of labor : Which of the following events may increase the marginal revenue product of labor?
Consequence of early-eighteenth-century consumer revolution : Which of the following was a consequence of the early-eighteenth-century consumer revolution in Europe?
Finalize your worksheet by making sure all columns : Finalize your worksheet by making sure all columns are formatted to accommodate the size of the data. In the same popup box pictured above in the Border tab.
In constrained minimization problem : In a constrained minimization problem, PA = $500, PB = $100, MB(A) = 50, and MB(B) = 60. If one unit of A is taken away, how many units of B must be added to keep total benefits constant? If one unit of A is taken away, how many units of B must be ad..
Annual sales growth and net sales attributed to loyalty card : Below are percentages for annual sales growth and net sales attributed to loyalty card usage at 74 Noodles & Company restaurants. Annual Sales Growth (%) and Loyalty Card Usage (% of Net Sales) (n = 74 restaurants) Store Growth% Loyalty% Store Growth..
Hires labor and sells its product in competitive markets : Complete the labor demand table below for a firm that hires labor and sells its product in competitive markets.
Determine the location of the center of pressure : Figure 4.42 shows a gasoline tank filled into the filler pipe. The gasoline has a specific gravity of 0.67. Calculate the total force on each flat end of the tank and determine the location of the center of pressure.
Complaints at an e-commerce retailer : 1. Over the last year 1,800 injections were administered at a clinic.  Quality is measured by the proper amount of dosage as well as the correct drug.  In six instances, the incorrect amount was given, and in three cases, the wrong drug was given...

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd