In constrained minimization problem

Assignment Help Business Economics

Reference no: EM131173118

In a constrained minimization problem, P = $500, PB = $100, MB = 50, and MB = 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 and MB?

Reference no: EM131173118

Questions Cloud

Nfectious diseases in haiti after the earth quake : Haiti was founded by a righteous revolution in 1804 and became the first black republic. It was the first country to break the chains of slavery, the first to force Emperor Napoleon to retreat, and the only to aid Simon Bolivar in his struggle to lib..

The equilibrium price and the equilibrium quantity : Given the following scenarios, explain what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is a normal good.

Why monopolies exist and demand and marginal revenue : The Sherman Antitrust Act was put into place to break up monopolies. In the late 1800s, John D. Rockefeller got rich monopolizing oil, J.P. Morgan did the same with the railroads, so the Sherman Antitrust (kind of like anti-monopoly) Act was created ..

When functional structure is combined with project structure : When a functional structure is combined with a project structure, the resulting structure is called a ___ structure. Strengths and weaknesses are the external factors of a company SWOT analysis. A key technique for increasing employee motivation is. ..

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

Interpret the intercept parameter in general demand function : The general demand function for good A is Qd = 754 - 2 PA - 0.05M + 6PB + 10?+ 3PE + 2N where Qd = quantity demanded of good A each month, PA = price of good A, M = average household income, PB = price of related good B, Interpret the intercept param..

Why do people still die from tuberculosis : Tuberculosis, also called TB, is one of the most ancient diseases of mankind, with evidence dating back to over seventeen thousand years from now. With time there have been new developments in the diagnosis and treatment of the disease, but the fact ..

Economic assumption more is better good fit for real world : Why is the economic assumption "more is better" a good fit for the real world?

Mostly rural and less populous area : Consider the market for land in upstate New York, a mostly rural and less populous area, as compared to the market for land in the Upper West Side of New York City, a well-to-do neighborhood alongside Central Park.

User Account

All Pages