Marginal analysis | Economics homework help

1. Purpose L and M are two purposes such as roads or dams. For L, Station L1 would be the leading station; L2 the instant station, etc. No station can prepare spontaneous former stations feel been completed. Thus L2 must be preceded by L1. The purposes profession the forthcoming archetypes of consumes and blessings.

PROJECT L                                                PROJECT M

 

Total Cost     Completion Benefit                      Total Cost      Completion Benefit

 

$5,000           9,000        Station 1                $5,000           8,000

 

10,000          16,000       Stage 2                 10,000         14,000

 

15,000          21,000        Stage 3                15,000           21,000

 

20,000          24,000        Station 4                20,000           29,000

 

a.) For each station of L and M, profession: ultimate consume, ultimate blessing; net ultimate blessing; net completion blessing.

 

b.) The capital can be divide in $5,000 increments in any way among L and M. What should be funded if the action has completion funds of: $15,000; $20,000; $30,000; $40,000?

 

c.) To what distance does the consume/blessing archetype of purpose M dissent the energy of decreasing ultimate blessings?

 

 

 

2.

Projects R and S profession the forthcoming archetypes of consumes and blessings.

 

PROJECT R                                         PROJECT S

 

Total Costs   Completion Benefit              Completion Consume Completion Benefit

 

$ 5,000             7,000                         $5,000           9,000

 

10,000             18,000                        10,000           21,000

 

15,000             41,000                          15,000           40,000

 

20,000             58,000                            20,000           60,000

 

a.) Profession the ultimate consume, ultimate blessing, net ultimate blessing and net completion blessing for each funding smooth.

 

b.) As in bearing #1, conducive capital can be divide in $5,000 increments in any way among R and S. What should be funded if the action has completion funds of $10,000; $15,000; $20,000? Why?

 

 

 

3.

Projects C and D feel the forthcoming archetypes of consumes and blessings.

 

Project C                                                         Project D

 

Marginal Costs($) Marg. Benefits            ($) Marg. Costs Marg. Benefits

 

6,000                   8,000                                           6,000               7,000

 

6,000                   8,000                                           6,000                 8,500

 

6,000                   9,000                                            6,000                   10,000

 

6,000                   8,000                                             6,000                    11,000

 

a.) Profession the completion consume, completion blessing, net ultimate blessing and net completion blessing for each station (i.e., funding smooth).

 

b.) As in anterior bearings, no station can be separated outside leading choosing its predecessors. What should be funded if the action has completion funds of $6,000; $12,000; $18,000; $30,000?

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