Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 21, Problem 1WNG
To determine
Illustrate the value of average fixed cost,
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
2. Question
The 'Democratic Family' consists of three members {mother m, father f, daughter
d}, that have different preferences with respect to how much money X € [0,8]
they think should be invested in the new family car. These preferences can be
represented by the following utility functions:
-
Mother m: um(X) = 2X - X²
Father f: uf(X) = 10X - X²
- Daughter d: ud(X) = 4X - X²
Calculate for each family member (f, m, d) the preferred amount of money
to invest in the new car denoted by X; for i = {m, f,d}. Assume that
(Xf, Xm, Xd) are the three alternatives on which the family must decide. Show
that each family member has rational preferences over this domain.
Preferences on the family level are determined by pairwise majority voting (all
family members vote on two alternatives). Derive the family preference and
check whether it is rational.
Assume that the final family decision is made by conducting sequential pair-
wise majority voting, where the loosing alternative is eliminated. Does…
3. Question
You invented a new lateral-flow test for asymptomatic Covid-19 detection,
where saliva is entered into a test-tube and then the result is shown directly
on the device. However, to save on costly chemicals you designed the tests
such that it always reports a negative test result. Assume that the incidence
rate is 5 per 1000 and that your test is used for detection of asymptomatic
cases (without symptoms).
(a) Calculate the probability that 100 randomly determined volunteers receive
a correct test result by using the AND-rule and the OR-rule. Can your
test be qualified as a diagnostic test?
(b) The health authorities are investigating the performance of your test.
Government guidelines require a specificity (conditional probability to re-
ceive a negative test result given that the test-taker is not infected with
COVID19) of at least 97% and a sensitivity (conditional probability to
receive a positive test result given that the test-taker is infected with
COVID-19) of at…
3. Question
You invented a new lateral-flow test for asymptomatic Covid-19 detection,
where saliva is entered into a test-tube and then the result is shown directly
on the device. However, to save on costly chemicals you designed the tests
such that it always reports a negative test result. Assume that the incidence
rate is 5 per 1000 and that your test is used for detection of asymptomatic
cases (without symptoms).
(a) Calculate the probability that 100 randomly determined volunteers receive
a correct test result by using the AND-rule and the OR-rule. Can your
test be qualified as a diagnostic test?
(b) The health authorities are investigating the performance of your test.
Government guidelines require a specificity (conditional probability to re-
ceive a negative test result given that the test-taker is not infected with
COVID19) of at least 97% and a sensitivity (conditional probability to
receive a positive test result given that the test-taker is infected with
COVID-19) of at…
Chapter 21 Solutions
Economics (MindTap Course List)
Ch. 21.2 - Prob. 1STCh. 21.2 - Prob. 2STCh. 21.2 - Prob. 3STCh. 21.2 - Prob. 4STCh. 21.3 - Prob. 1STCh. 21.3 - Prob. 2STCh. 21.3 - Prob. 3STCh. 21.4 - Prob. 1STCh. 21.4 - Prob. 2STCh. 21.4 - Prob. 3ST
Ch. 21.4 - Prob. 4STCh. 21.5 - Prob. 1STCh. 21.5 - Prob. 2STCh. 21.5 - Prob. 3STCh. 21 - Prob. 1QPCh. 21 - Prob. 2QPCh. 21 - Prob. 3QPCh. 21 - Prob. 4QPCh. 21 - Prob. 5QPCh. 21 - Prob. 6QPCh. 21 - Prob. 7QPCh. 21 - Prob. 8QPCh. 21 - Prob. 9QPCh. 21 - Prob. 10QPCh. 21 - Prob. 11QPCh. 21 - Prob. 12QPCh. 21 - Prob. 13QPCh. 21 - Prob. 14QPCh. 21 - Prob. 15QPCh. 21 - Prob. 16QPCh. 21 - Prob. 17QPCh. 21 - Prob. 18QPCh. 21 - Prob. 19QPCh. 21 - Prob. 1WNGCh. 21 - Prob. 2WNGCh. 21 - Prob. 3WNGCh. 21 - Prob. 4WNGCh. 21 - Prob. 5WNGCh. 21 - Prob. 6WNGCh. 21 - Prob. 7WNGCh. 21 - Prob. 8WNGCh. 21 - Prob. 9WNG
Knowledge Booster
Similar questions
- I need expert handwritten solutionsarrow_forwardmachine A operated manually cost 2000naira has a life of 2 years, while an automatic machine B cost 5000naira but has a life of 4 years,operating cost for machine A is 4000naira per year while of machine B is 3000naira only, which should be purchased?consider 10% interest I need expert handwritten solutionsarrow_forwardDon't used Ai solutionarrow_forward
- not use ai pleasearrow_forwardUse the following table to work Problems 5 to 9. Minnie's Mineral Springs, a single-price monopoly, faces the market demand schedule: Price Quantity demanded (dollars per bottle) 10 8 (bottles per hour) 0 1 6 2 4 3 2 4 0 5 5. a. Calculate Minnie's total revenue schedule. b. Calculate its marginal revenue schedule. 6. a. Draw a graph of the market demand curve and Minnie's marginal revenue curve. b. Why is Minnie's marginal revenue less than the price? 7. a. At what price is Minnie's total revenue maxi- mized? b. Over what range of prices is the demand for water from Minnie's Mineral Springs elastic? 8. Why will Minnie not produce a quantity at which the market demand for water is inelastic?arrow_forwardDon't give AI generated solution otherwise I will give you downward Give correct answer with explanationarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
- Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning