Exam 3: Marginal Analysis for Optimal Decision Making

A package delivery service uses vans and employees to deliver the maximum number of packages given a fixed budget.The last van added 600 packages to total output,while the last employee added 500 packages.If vans cost $400 per week and employees earn $300 per week,the firm

agency is having problems with personal phone calls made during working hours.Each minute of a personal call costs the agency $0.50 in wasted wages.The agency hires operators to monitor calls in order to attain the optimal number of personal calls minimize total cost of personal calls). Based on the above information,if operators receive $25 an hour,how many operators should the agency hire?

Randolph is taking three courses this semester: economics,statistics,and finance.He has decided to spend 20 hours per week studying in addition to attending all his classes)and his objective is to maximize his average grade,which means maximizing the total of his grades in the three courses.The table shows Randolph's estimate of the relation between time spend studying and his grade for each course. Based on the above info,what is the maximum AVERAGE grade Randolph can earn if he studies 20 hours per week?

function a decision maker seeks to maximize or minimize is the ________ function.

A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll.The last doctor hired treated 1,600 extra patients in a year,while the last nurse hired treated 1,000 extra patients in a year.If doctors make $64,000 a year and nurses make $40,000 a year,then

A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll.The last doctor hired treated 1,600 extra patients in a year,while the last nurse hired treated 1,000 extra patients in a year.If doctors make $40,000 a year,what do nurses make?

agency is having problems with personal phone calls made during working hours.Each minute of a personal call costs the agency $0.50 in wasted wages.The agency hires operators to monitor calls in order to attain the optimal number of personal calls minimize total cost of personal calls). Based on the above information,if operators receive $25 an hour,what is the minimum possible total cost of personal calls per hour)?

A firm is deciding whether or not to close down its plant and modernize by installing new technology.Which of the following should management ignore when making the decision?

Dr.X,an assistant professor at a large state university,is trying to decide how to allocate the 50 hours a week she spends working among the various activities expected of an assistant professor.The professor wants to maximize her raise next year and the table shows estimates of how time spent in each activity will contribute to her raise: Given the above information,how should she allocate her time?

A publishing house is using 400 printers and 200 printing presses to produce books.The printers' wage rate is $20 and the price of a printing press is $100.The last printer added 20 books to total output,while the last press added 50 books to total output.In order to maximize the number of books published with a budget of $28,000,the publishing house

An agency is having problems with personal phone calls made during working hours.Each minute of a personal call costs the agency $0.50 in wasted wages.The agency hires operators to monitor calls in order to attain the optimal number of personal calls minimize total cost of personal calls). Based on the above information,what is the most the agency would be willing to pay the first operator?

The manager of the customer service department at a bank can hire employees with a high school degree HS)who earn $10,000 annually or employees with a bachelor's degree B)who earn $20,000.The manager wants to maximize the number of customers served given a fixed payroll. Given the above info,if the manager has a payroll of $80,000,how should the budget be allocated in order to maximize the number of customers served?

If the marginal benefits of increasing study time are less than the marginal costs,then

In order to minimize the NET costs associated with crime,

A manager in charge of new product development can hire engineers and market researchers.The annual salary of an engineer is $30,000 and that of a market researcher is $20,000.The marginal contribution of engineers and market researchers are Given the above information,if the manager has an annual budget of $120,000,how should this budget be allocated in order to maximize the number of new products developed?

A manager in charge of new product development can hire engineers and market researchers.The annual salary of an engineer is $40,000 while a market researcher receives $20,000.The marginal contribution of engineers and market researchers are: Based on the above information,how should a manager with an annual budget of $240,000,allocate this budget in order to maximize the number of new products developed?

The optimal level of any activity is that level for which

A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts.The firm wants to minimize the net cost of warehouse thefts. Given the above info,if the cost of a stolen radio is $25,what is the MOST the firm would be willing to pay to hire the first security guard?

continuous choice variable

A Blue Ribbon Committee has decided that acid rain should be reduced and is trying to determine the optimal level of reduction.There are benefits from reducing acid rain more wildlife and forests,better health,etc.),but there are also costs.The committee estimates that the marginal benefit of each unit of reduction is $700- 5R,where R is units of reduction,and the marginal cost is 2R.If the committee wants to maximize the net benefit from reducing acid rain,what is the optimal level of pollution reduction?