Exam 3: Marginal Analysis for Optimal Decision Making

A government agency is having problems with personal telephone calls made during working hours.Because each minute of a personal call costs the agency $0.50 in wasted wages,it has decided to hire operators to monitor calls.The agency wants to hire the number of operators that will minimize the total cost of personal calls. Based on the above information,what is the most the agency would be willing to pay the fifth operator?

A toy manufacturer is experiencing quality problems on its assembly line.Every defective toy that leaves the factory costs the firm $20.The firm has decided to hire quality inspectors to catch defective toys before they leave the factory. Given the above information,if each inspector is paid $100 a day,how many inspectors should the firm hire to minimize the total cost of defective toys?

Refer to the following table: What is marginal benefit for the 3rd unit of the activity?

A local charity has decided to solicit donations door-to-door.The table below shows estimated donations for each hour a volunteer spends in the city,in the suburbs,and on campus. Given the above information,with 10 hours of soliciting,the maximum possible amount of donations is

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,what is Dr.X's maximum possible raise if she works 50 hours?

Use the following marginal benefit and marginal cost functions for activity A: MB = 100- 5A MC = 20 + 3A The fifth unit of activity A will

In order to minimize the net cost of pollution reduction,the level of pollution reduction the amount of a pollutant not released into the environment)should be the level at which

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's payroll is $120,000,what should be done to maximize the number of customers served?

A government agency is having problems with personal telephone calls made during working hours.Because each minute of a personal call costs the agency $0.50 in wasted wages,it has decided to hire operators to monitor calls.The agency wants to hire the number of operators that will minimize the total cost of personal calls. Based on the above information,if operators receive $300 a week,how many operators should the agency hire?

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 contributions of engineers and market researchers are: Based on the above information,how should the manager with an annual budget of $160,000,allocate this budget in order to maximize the number of new products developed?

A housecleaning company receives $25 for each house cleaned.The table below gives the relation between the number of workers and the number of houses that can be cleaned per week. Based on the above info,if the company want to maximize profit and hires three workers,the wage rate of a housecleaner can be no more than

A housecleaning company receives $25 for each house cleaned.The table below gives the relation between the number of workers and the number of houses that can be cleaned per week. Based on the above info,the marginal revenue from the fourth worker is

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 contributions of engineers and market researchers are: Based on the above information,if the manager currently hires four engineers and one market researcher,what must be true?

A restaurant hires cooks and waiters.Cooks earn $10 an hour; waiters earn $5 an hour.The manager,who wants to maximize the number of meals served given a fixed payroll of $45 per hour,expects the following from cooks and waiters: Given the above information,and given the fixed payroll,the maximum number of meals that can be served is

Your firm sells club soda in both grocery stores and convenience stores.You have a budget of $550 for store displays,and must decide how to allocate this budget between grocery stores and convenience stores to maximize the total number of sales.The following table shows the total number of units that can be sold in grocery stores and convenience stores,according to the number of displays in each type of store.Displays in grocery stores cost $150 each and displays in convenience stores cost $100 each. Given the above information,at the optimal choice with a budget of $550,the last dollar spent on grocery store displays yields

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 each security guard is paid $200 a week and the cost of a stolen radio is $25,how many security guards should the firm hire?