What property is illustrated by the behavior of marginal products?O Negative returns to capitalO Increasing returns to capitalO Diminishing returns to capitalb. How many screens will be built if the real interest rate is 5.5 percent?screen(s)c. How many screens will be built if the real interest rate is 7.5 percent?screen(s)d. How many screens will be built if the real interest rate is 10 percent?screen(s)e. If the real interest rate is 5.5 percent, what is the highest construction cost per screen that would make a five-screen complexprofitable? Thebuilder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the numberof patrons the complex will attract each year, depending on the number of screens available.Number of screens123452After paying the movie distributors and meeting all other noninterest expenses, the owner expects to net $2 per ticket sold.Construction costs are $1,000,000 per screen.Instructions: Enter your responses as whole numbers.a. Make a table showing the value of marginal product for each screen from the first through the fifthValue of marginal productHumber of screens1$34Total number of patrons40,00065,00085,000100,000110,0005$$O Negative returns to capitalO Increasing returns to capitalO Diminishing returns to capitalSm$What property is illustrated by the behavior of marginal products?b. How many screens will be built if the real interest rate is 5.5 percent?

The marginal product of an input, say labour, is defined as the extra output that results from…

b. How many screens will be built if the real interest rate is 5.5 percent? screen(s) c. How many screens will be built if the real interest rate is 7.5 percent? screen(s) d. How many screens will be built if the real interest rate is 10 percent? screen(s) e. If the real interest rate is 5.5 percent, what is the highest construction cost per screen that would make a five-screen complex profitable?

b. How many screens will be built if the real interest rate is 5.5 percent? screen(s) c. How many screens will be built if the real interest rate is 7.5 percent? screen(s) d. How many screens will be built if the real interest rate is 10 percent? screen(s) e. If the real interest rate is 5.5 percent, what is the highest construction cost per screen that would make a five-screen complex profitable?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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