To answer: Why good decision making depend upon accurately defining costs and benefits Concept Introduction: Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service. Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 9, Problem aWYWL

To determine

To answer:

Why good decision making depend upon accurately defining costs and benefits

Concept Introduction:

Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity

Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service.

Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Expert Solution & Answer

Explanation of Solution

The good decision making depend upon the costs and benefits of the given activity to be more specific we can say that it depends upon the marginal cost and marginal benefits. The decision making used by marginal cost and benefit called marginal analysis. For an example the marginal cost of a given activity outweighs it marginal benefit then people should avoid that activity. The famous economist Gregory Mankiw wrote in his book that ‘the rational people always look at the margin’. So a consumer will consume a particular good until his or her marginal benefit is equal to the marginal cost. When we take the case of production is only benefited when the marginal benefit is greater than the marginal cost, when this happens the producer will have to produce more. When the marginal cost of production outweighs the marginal benefit here the producer should try to decrease the production. So it is always important to consider marginal cost and marginal benefit when making the decision. The rational people always look at the margin

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Test Preparation QUESTION 2 [20] 2.1 Body Mass Index (BMI) is a summary measure of relative health. It is calculated by dividing an individual's weight (in kilograms) by the square of their height (in meters). A small sample was drawn from the population of UWC students to determine the effect of exercise on BMI score. Given the following table, find the constant and slope parameters of the sample regression function of BMI = f(Weekly exercise hours). Interpret the two estimated parameter values. X (Weekly exercise hours) Y (Body-Mass index) QUESTION 3 2 4 6 8 10 12 41 38 33 27 23 19 Derek investigates the relationship between the days (per year) absent from work (ABSENT) and the number of years taken for the worker to be promoted (PROMOTION). He interviewed a sample of 22 employees in Cape Town to obtain information on ABSENT (X) and PROMOTION (Y), and derived the following: ΣΧ ΣΥ 341 ΣΧΥ 176 ΣΧ 1187 1012 3.1 By using the OLS method, prove that the constant and slope parameters of the…

QUESTION 2 2.1 [30] Mariana, a researcher at the World Health Organisation (WHO), collects information on weekly study hours (HOURS) and blood pressure level when writing a test (BLOOD) from a sample of university students across the country, before running the regression BLOOD = f(STUDY). She collects data from 5 students as listed below: X (STUDY) 2 Y (BLOOD) 4 6 8 10 141 138 133 127 123 2.1.1 By using the OLS method and the information above derive the values for parameters B1 and B2. 2.1.2 Derive the RSS (sum of squares for the residuals). 2.1.3 Hence, calculate ô 2.2 2.3 (6) (3) Further, she replicates her study and collects data from 122 students from a rival university. She derives the residuals followed by computing skewness (S) equals -1.25 and kurtosis (K) equals 8.25 for the rival university data. Conduct the Jacque-Bera test of normality at a = 0.05. (5) Upon tasked with deriving estimates of ẞ1, B2, 82 and the standard errors (SE) of ẞ1 and B₂ for the replicated data.…

If you were put in charge of ensuring that the mining industry in canada becomes more sustainable over the course of the next decade (2025-2035), how would you approach this? Come up with (at least) one resolution for each of the 4 major types of conflict: social, environmental, economic, and political

Answer 2

Question

Chapter 9, Problem aWYWL

To determine

To answer:

Why good decision making depend upon accurately defining costs and benefits

Concept Introduction:

Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity

Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service.

Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Expert Solution & Answer

Explanation of Solution

The good decision making depend upon the costs and benefits of the given activity to be more specific we can say that it depends upon the marginal cost and marginal benefits. The decision making used by marginal cost and benefit called marginal analysis. For an example the marginal cost of a given activity outweighs it marginal benefit then people should avoid that activity. The famous economist Gregory Mankiw wrote in his book that ‘the rational people always look at the margin’. So a consumer will consume a particular good until his or her marginal benefit is equal to the marginal cost. When we take the case of production is only benefited when the marginal benefit is greater than the marginal cost, when this happens the producer will have to produce more. When the marginal cost of production outweighs the marginal benefit here the producer should try to decrease the production. So it is always important to consider marginal cost and marginal benefit when making the decision. The rational people always look at the margin

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 9, Problem aWYWL

To determine

To answer:

Why good decision making depend upon accurately defining costs and benefits

Concept Introduction:

Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity

Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service.

Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Expert Solution & Answer

Explanation of Solution

The good decision making depend upon the costs and benefits of the given activity to be more specific we can say that it depends upon the marginal cost and marginal benefits. The decision making used by marginal cost and benefit called marginal analysis. For an example the marginal cost of a given activity outweighs it marginal benefit then people should avoid that activity. The famous economist Gregory Mankiw wrote in his book that ‘the rational people always look at the margin’. So a consumer will consume a particular good until his or her marginal benefit is equal to the marginal cost. When we take the case of production is only benefited when the marginal benefit is greater than the marginal cost, when this happens the producer will have to produce more. When the marginal cost of production outweighs the marginal benefit here the producer should try to decrease the production. So it is always important to consider marginal cost and marginal benefit when making the decision. The rational people always look at the margin

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem aWYWL

To determine

To answer:

Why good decision making depend upon accurately defining costs and benefits

Concept Introduction:

Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity

Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service.

Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Expert Solution & Answer

Explanation of Solution

The good decision making depend upon the costs and benefits of the given activity to be more specific we can say that it depends upon the marginal cost and marginal benefits. The decision making used by marginal cost and benefit called marginal analysis. For an example the marginal cost of a given activity outweighs it marginal benefit then people should avoid that activity. The famous economist Gregory Mankiw wrote in his book that ‘the rational people always look at the margin’. So a consumer will consume a particular good until his or her marginal benefit is equal to the marginal cost. When we take the case of production is only benefited when the marginal benefit is greater than the marginal cost, when this happens the producer will have to produce more. When the marginal cost of production outweighs the marginal benefit here the producer should try to decrease the production. So it is always important to consider marginal cost and marginal benefit when making the decision. The rational people always look at the margin

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem aWYWL

To determine

To answer:

Why good decision making depend upon accurately defining costs and benefits

Concept Introduction:

Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity

Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service.

Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Expert Solution & Answer

Explanation of Solution

The good decision making depend upon the costs and benefits of the given activity to be more specific we can say that it depends upon the marginal cost and marginal benefits. The decision making used by marginal cost and benefit called marginal analysis. For an example the marginal cost of a given activity outweighs it marginal benefit then people should avoid that activity. The famous economist Gregory Mankiw wrote in his book that ‘the rational people always look at the margin’. So a consumer will consume a particular good until his or her marginal benefit is equal to the marginal cost. When we take the case of production is only benefited when the marginal benefit is greater than the marginal cost, when this happens the producer will have to produce more. When the marginal cost of production outweighs the marginal benefit here the producer should try to decrease the production. So it is always important to consider marginal cost and marginal benefit when making the decision. The rational people always look at the margin

Answer 6

Chapter 9, Problem aWYWL

To determine

To answer:

Why good decision making depend upon accurately defining costs and benefits

Concept Introduction:

Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity

Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service.

Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Expert Solution & Answer

Explanation of Solution

The good decision making depend upon the costs and benefits of the given activity to be more specific we can say that it depends upon the marginal cost and marginal benefits. The decision making used by marginal cost and benefit called marginal analysis. For an example the marginal cost of a given activity outweighs it marginal benefit then people should avoid that activity. The famous economist Gregory Mankiw wrote in his book that ‘the rational people always look at the margin’. So a consumer will consume a particular good until his or her marginal benefit is equal to the marginal cost. When we take the case of production is only benefited when the marginal benefit is greater than the marginal cost, when this happens the producer will have to produce more. When the marginal cost of production outweighs the marginal benefit here the producer should try to decrease the production. So it is always important to consider marginal cost and marginal benefit when making the decision. The rational people always look at the margin

Answer 7

Chapter 9, Problem aWYWL

To determine

To answer:

Why good decision making depend upon accurately defining costs and benefits

Concept Introduction:

Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity

Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service.

Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Answer 8

Expert Solution & Answer

Explanation of Solution

The good decision making depend upon the costs and benefits of the given activity to be more specific we can say that it depends upon the marginal cost and marginal benefits. The decision making used by marginal cost and benefit called marginal analysis. For an example the marginal cost of a given activity outweighs it marginal benefit then people should avoid that activity. The famous economist Gregory Mankiw wrote in his book that ‘the rational people always look at the margin’. So a consumer will consume a particular good until his or her marginal benefit is equal to the marginal cost. When we take the case of production is only benefited when the marginal benefit is greater than the marginal cost, when this happens the producer will have to produce more. When the marginal cost of production outweighs the marginal benefit here the producer should try to decrease the production. So it is always important to consider marginal cost and marginal benefit when making the decision. The rational people always look at the margin

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 9 - Prob. aWYWL Ch. 9 - Prob. bWYWL Ch. 9 - Prob. cWYWL Ch. 9 - Prob. dWYWL Ch. 9 - Prob. eWYWL Ch. 9 - Prob. fWYWL Ch. 9 - Prob. 1QFT Ch. 9 - Prob. 2QFT Ch. 9 - Prob. 3QFT Ch. 9 - Prob. 1P

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions