Business, 11.10.2020 01:01 anoynomouskali9297

A dentist shares an office building with a radio station. The electrical current from the dentist's drill causes static in the radio broadcast, causing the radio station to lose $10,000 in profits. The radio station could put up a shield at a cost of $30,000 or the dentist could buy a new drill that causes less interference for $6,000. Either would restore the radio station's lost profits. Would it be economically efficient for the dentist to buy and put up a shield? Why or why not? By how much would total surplus change? a. Would it be economically efficient for the radio station to buy and put up a shield? Why or why not? By how much would total surplus change?
c. Would it be economically efficient for the dentist to buy a new drill? Why or why not? By how much would total surplus change?
d. Would it be efficient for the radio station to buy the dentist a new drill? Why or why not? By how much would total surplus change?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 19:40

You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. (leave no cells blank - be certain to enter "0" wherever required. do not round intermediate calculations. enter your answers in millions.) a. what will profits be if sales turn out to be $1.5 million?

Answers: 3

Answer

Business, 22.06.2019 20:40

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.

Answers: 1

Answer

Business, 22.06.2019 22:50

Which of these makes a student loan different from other types of loans

Answers: 1

Answer

Business, 22.06.2019 23:40

Gdp has grown in a country at 3% per year for the last 20 years. the labor force has grown at 2% per year and the quantity of physical capital has grown at 4% per year. a 1% increase in average physical capital per worker (other things equal) raises productivity by 0.3%. average education has not changed. how much has growing physical capital per worker contributed to productivity growth in this country? choose the correct answer from the following choices, and then select the submit answer button. answer choices 0.3% 0.6% 3.0% 6.0%

Answers: 1

Answer

You know the right answer?

A dentist shares an office building with a radio station. The electrical current from the dentist's...

Questions