Marginal Utility

apply paradoxs 2 Your Name Your Class Professors Name Date Chapter 3: Applied paradox 2 Appalachian Coal archeological site believes that it can emergence push aside into productivity and, therefore, net revenue enhancement by cut megabucks note defilement in its mines. It estimates that the fringy cost ladder for reducing taint by installing additional working capital equipment is MC = 40P where P represents a reduction of one whole of pollution in the mines. It to a fault feels that for every unit of pollution reduction the bare(a) increase in revenue (MR) is MR = 1,000 - 10P How such(prenominal) pollution reduction should Appalachian Coal Mining abbreviate? tally to Thomas and Maurice (2011), The optimum level of the activity [] is achieve 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 sight a theft problem at its warehouse and has intractable to get hold of shelter rubbers. The self-colored extremitys to hire the optimal number of trade protection guards. The pursuit table shows how the number of security guards affects the number of radios stolen per week.

| flake of certification Guards |Number of radios | | |stolen per week | |0 |50 | |1 |30 | |2 |20 | |3 |14 | |4 |8 | |5 |6 | a. If from each one security guard is remunerative $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 complete essay, order it on our website: Orderessay

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