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Explain using an example why net benefits are highest when marginal net benefits are zero?
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- How does cost-benefit analysis differ from cost-effectiveness analysis?"Uber eats usually has a promotion in which, if a customer orders more than $30 worth of food at a specific restaurant, the customer will get a discount of 15% off their order. "Answer the following questions concisely:1. Before this promotion starts, in general terms, what do a customer's marginal cost and marginal benefit curves look like? (eg Upward sloping, downward sloping, horizontal?). Be clear about what is being measured. 2. What is Uber's goal with this policy?3. How does this affect an average customer's marginal cost and marginal benefit curves, and their intersection? 4. What is a plausible secondary effect that is likely to happen that is not Uber's goal?Why is the marginal benefit curve downward sloping and why is the marginal cost curve upward sloping?
- Katie loves swimming. Every afternoon, she visits the local swimming pool for a swim. The entry cost to the pool costs Katie $10 but she can swim for as long as she wants. Once she has entered the pool and paid the fee, Katie wonders how many hours should she spend swimming if she were to think like an economist. She expects to gain an incremental benefit of $21 from the first hour of swimming, then gains subsequent incremental benefits of $17 from the second, $11 from the third and $4 from the fourth. For every hour spent swimming, it will cost Katie $6 as she could have spent the time doing her homework. In determining how many hours Katie should be swimming, the $10 entry fee to the pool is a/an Type A for Average cost, M for Marginal cost, S for Sunk cost or O for Opportunity cost. Using marginal analysis, what is the optimal amount of hours Katie should spend swimming? The maximum surplus for Katie, from spending the number of hours you found in part b, is $ Answer to the nearest…What is the difference of absolute advantage and comparitive advantage?I am trying to figure out how to find the marginal benefit
- Mr. Adam has recently graduated from NSU and is now thinking of starting an MBA in the USA. How can the cost-benefit model help Mr. Adam in his decision? Discuss in detail how the cost-benefit model can be applied in this case.Ivan stops studying before the point at which his marginal benefits of studying equal his marginal costs. Is Ivan forfeiting any net benefits?
