Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 2, Problem 19P
To determine
(a)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation is also to be determined.
To determine
(b)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
To determine
(c)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
To determine
(d)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
To determine
(e)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
To determine
(f)
To compute:
The expected marginal benefits of crossing and marginal costs. The change in benefit-cost equation due to the given condition is also to be determined.
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Students have asked these similar questions
c. Imagine that you are trying to decide whether to cross a street without using the designated
crosswalk at the traffic signal. What are the expected marginal benefits of crossing? The
expected marginal costs? How would the following conditions change your benefit-cost
equation?
The street is busy.
i.
ii.
The street is empty and it was 3 a.m.
ii.
You are in a huge hurry.
iv.
A police officer is standing 100 feet away.
v.
The closest crosswalk is a mile away.
vi.
The closest crosswalk is 10 feet away.
Say that you are a manager with the Transportation Security Administration (TSA). The table below shows fictional estimates of the
marginal benefit and marginal cost of additional TSA security lines at Mahlon Sweet Field, the airport in Eugene, Oregon.
Number of
Marginal
In this space, draw the graph of the marginal
data from the left columns.
Answer these questions below using the data
table and graph.
Benefit
3.
Security
Lines
1
2
3
4
5
6
$10,000
9,000
7,000
5,000
4,000
3,000
Marginal
Cost
$2,000
3,000
4,000
5,000
8,000
12,000
The surplus of the marginal benefit over cost
for the second security line is $
and $
for the third security line. If
your goal is to maximize total surplus, you
WILL / WILL NOT (circle one) operate a third
security line.
The optimal number of TSA security lines is
because this is where the marginal
equals the marginal
which maximizes total
Think of an economic
decision you made recently
wherein the benefit
outweighed the cost (or
the cost outweighed the
benefit).
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