Definition of optimization and to distinguish between the total value and marginal analysis optimization.

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Answer 1

Question

Chapter 3, Problem 1Q

To determine

Definition of optimization and to distinguish between the total value and marginal analysis optimization.

Expert Solution & Answer

Explanation of Solution

Optimization is one of the major principles, upon which economics is based. It refers to the process of an economic agent choosing the most satisfying option under the given feasibility constraints.

Total value optimization helps us to pick the best alternative by calculating the total benefit derived from various options. It can be in terms of benefit, cost or net benefit. Whichever alternative yields the highest (lowest) total benefit (cost) or net total benefit becomes the chosen alternative in this case.

Marginal analysis, on the other hand, concentrates on evaluating how the value of the alternatives change with an increase in a single unit. This can be done by observing the change in net benefit, costs or benefit as the magnitude increases by a single unit. Marginal refers to the change that occurs due to the addition of one unit. If the marginal costs of an alternative exceed its marginal benefit, that alternative is not considered feasible.

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Nikki decided to jog 3 miles for exercise by reasoning that a 3-mile jog was better than either a 2-mile jog or a 4-mile jog OA. Neither type of optimization, since she is not considering the total benefits of alternatives. OB. Optimization using total value, since she is comparing the net benefits between alternatives. OC. Both types of optimization, since she is considering the net benefits of alternatives. 4 OD. Optimization using marginal analysis, since she is calculating the difference in net benefits between alternatives. OE. Optimization using total value, since she is making marginal comparisons.

Answer 2

Question

Chapter 3, Problem 1Q

To determine

Definition of optimization and to distinguish between the total value and marginal analysis optimization.

Expert Solution & Answer

Explanation of Solution

Optimization is one of the major principles, upon which economics is based. It refers to the process of an economic agent choosing the most satisfying option under the given feasibility constraints.

Total value optimization helps us to pick the best alternative by calculating the total benefit derived from various options. It can be in terms of benefit, cost or net benefit. Whichever alternative yields the highest (lowest) total benefit (cost) or net total benefit becomes the chosen alternative in this case.

Marginal analysis, on the other hand, concentrates on evaluating how the value of the alternatives change with an increase in a single unit. This can be done by observing the change in net benefit, costs or benefit as the magnitude increases by a single unit. Marginal refers to the change that occurs due to the addition of one unit. If the marginal costs of an alternative exceed its marginal benefit, that alternative is not considered feasible.

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Answer 3

Question

Chapter 3, Problem 1Q

To determine

Definition of optimization and to distinguish between the total value and marginal analysis optimization.

Expert Solution & Answer

Explanation of Solution

Optimization is one of the major principles, upon which economics is based. It refers to the process of an economic agent choosing the most satisfying option under the given feasibility constraints.

Total value optimization helps us to pick the best alternative by calculating the total benefit derived from various options. It can be in terms of benefit, cost or net benefit. Whichever alternative yields the highest (lowest) total benefit (cost) or net total benefit becomes the chosen alternative in this case.

Marginal analysis, on the other hand, concentrates on evaluating how the value of the alternatives change with an increase in a single unit. This can be done by observing the change in net benefit, costs or benefit as the magnitude increases by a single unit. Marginal refers to the change that occurs due to the addition of one unit. If the marginal costs of an alternative exceed its marginal benefit, that alternative is not considered feasible.

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Answer 4

Question

Chapter 3, Problem 1Q

To determine

Definition of optimization and to distinguish between the total value and marginal analysis optimization.

Expert Solution & Answer

Explanation of Solution

Optimization is one of the major principles, upon which economics is based. It refers to the process of an economic agent choosing the most satisfying option under the given feasibility constraints.

Total value optimization helps us to pick the best alternative by calculating the total benefit derived from various options. It can be in terms of benefit, cost or net benefit. Whichever alternative yields the highest (lowest) total benefit (cost) or net total benefit becomes the chosen alternative in this case.

Marginal analysis, on the other hand, concentrates on evaluating how the value of the alternatives change with an increase in a single unit. This can be done by observing the change in net benefit, costs or benefit as the magnitude increases by a single unit. Marginal refers to the change that occurs due to the addition of one unit. If the marginal costs of an alternative exceed its marginal benefit, that alternative is not considered feasible.

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Answer 5

Chapter 3, Problem 1Q

To determine

Definition of optimization and to distinguish between the total value and marginal analysis optimization.

Expert Solution & Answer

Explanation of Solution

Optimization is one of the major principles, upon which economics is based. It refers to the process of an economic agent choosing the most satisfying option under the given feasibility constraints.

Total value optimization helps us to pick the best alternative by calculating the total benefit derived from various options. It can be in terms of benefit, cost or net benefit. Whichever alternative yields the highest (lowest) total benefit (cost) or net total benefit becomes the chosen alternative in this case.

Marginal analysis, on the other hand, concentrates on evaluating how the value of the alternatives change with an increase in a single unit. This can be done by observing the change in net benefit, costs or benefit as the magnitude increases by a single unit. Marginal refers to the change that occurs due to the addition of one unit. If the marginal costs of an alternative exceed its marginal benefit, that alternative is not considered feasible.

Answer 6

Chapter 3, Problem 1Q

To determine

Definition of optimization and to distinguish between the total value and marginal analysis optimization.

Expert Solution & Answer

Explanation of Solution

Optimization is one of the major principles, upon which economics is based. It refers to the process of an economic agent choosing the most satisfying option under the given feasibility constraints.

Total value optimization helps us to pick the best alternative by calculating the total benefit derived from various options. It can be in terms of benefit, cost or net benefit. Whichever alternative yields the highest (lowest) total benefit (cost) or net total benefit becomes the chosen alternative in this case.

Marginal analysis, on the other hand, concentrates on evaluating how the value of the alternatives change with an increase in a single unit. This can be done by observing the change in net benefit, costs or benefit as the magnitude increases by a single unit. Marginal refers to the change that occurs due to the addition of one unit. If the marginal costs of an alternative exceed its marginal benefit, that alternative is not considered feasible.

Answer 7

Chapter 3, Problem 1Q

To determine

Definition of optimization and to distinguish between the total value and marginal analysis optimization.

Answer 8

Expert Solution & Answer

Explanation of Solution

Optimization is one of the major principles, upon which economics is based. It refers to the process of an economic agent choosing the most satisfying option under the given feasibility constraints.

Total value optimization helps us to pick the best alternative by calculating the total benefit derived from various options. It can be in terms of benefit, cost or net benefit. Whichever alternative yields the highest (lowest) total benefit (cost) or net total benefit becomes the chosen alternative in this case.

Marginal analysis, on the other hand, concentrates on evaluating how the value of the alternatives change with an increase in a single unit. This can be done by observing the change in net benefit, costs or benefit as the magnitude increases by a single unit. Marginal refers to the change that occurs due to the addition of one unit. If the marginal costs of an alternative exceed its marginal benefit, that alternative is not considered feasible.