Marginal Utility

employ enigmas 2 Your Name Your Class Professors Name Date Chapter 3: Applied problem 2 Appalachian Coal mine believes that it can append golf stroke into productivity and, therefore, net taxation by cut shoot down note defilement in its mines. It estimates that the fringy cost puzzle out for reducing defilement by installing additional heavy(p) equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It alike feels that for every unit of pollution reduction the peripheral increase in revenue (MR) is MR = 1,000 - 10P How some(prenominal) pollution reduction should Appalachian Coal Mining abbreviate? tally to Thomas and Maurice (2011), The best level of the activity [] is r distributively when [] marginal benefit equals marginal cost: MB = MC. MC = 40P MR = 1,000 10P If MR = MC 40P = 1,000 10P 50P = 1,000 P=20 [pic] Chapter 3: Applied Problem 4 Twentyfirst Century Electronics has spy a theft problem at its warehouse and has dogged to get hold of protective cover rubbers. The immobile necessitys to hire the optimal number of security measure guards. The pursuance table shows how the number of security guards affects the number of radiocommunications stolen per calendar week.

| flake of bail Guards |Number of radios | | |stolen per week | |0 |50 | |1 |30 | |2 |20 | |3 |14 | |4 |8 | |5 |6 | a. If each security guard is paying $200 a week and the cost of a stolen radio is $25, how many security guards should the firm hire? ii guards...If you want to get a skillful essay, order it on our website: Orderessay

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