User Account

All Pages

Difference between marginal benefits and marginal costs

Assignment Help Business Management
Reference no: EM131199689

Consider a municipality A and an irrigation district B with the following marginal net benefit functions that describe net benefits from water consumption q.

MNBA = 72-12qA

MNBB = 30-qB

Recall marginal net benefits (MNB) shows the difference between marginal benefits and marginal costs. The quantity that maximizes net benefits is found where MNB=0.

a.) Assume the municipality A and the irrigation district B have two different sources of water. Assume it has been a very snowy winter and there is plenty of water for everyone. How much water should be processed and consumed by each?

b.) How much total surplus (net benefits) is enjoyed by each?

c.) Now assume it has been a less snowy winter and water supplies are limited. Each lake contains only 9 units of water for the season. What is the efficient water consumption for each?

d.) How much total surplus is enjoyed by each?

e.) Now assume the municipality and the irrigation district have to share water from a single lake. In the current year, only 9 total units of water are available to be shared between the municipality and the irrigation district. How should these 9 units be allocated to maximize net benefits? Show this result graphically.

Reference no: EM131199689

Questions Cloud

Why would you have been ready to declare independence : Put yourself in their shoes. If you had read this (what am I talking about, of course you have READ this) back in 1776, would you have been ready to declare independence?
Create an argument for or against the passage : Create an argument for or against the passage of such a law based on your conception of the ideas on the optimum size of government and on government interventions in the economy (Social Security is an intervention in the economy).
How much rental income does the prevetti partnership have : The Prevetti Partnership is engaged in the purchase and management of apartment complexes.- How much rental income does the Prevetti Partnership have for the current year? Explain.
Foreign subsidiary in poor nation : A visiting American executive finds that a foreign subsidiary in a poor nation has hired a 12-year-old girl to work on a factory floor, in violation of the company's prohibition on child labor. He tells the local manager to replace the child and tell..
Difference between marginal benefits and marginal costs : Recall marginal net benefits (MNB) shows the difference between marginal benefits and marginal costs. The quantity that maximizes net benefits is found where MNB=0.
Personal managerial practice in construction consulting : Using a first-person writing style, detailing what you have learned since enrolling in the Bachelor of Science in Business Administration degree. Specifically, I am looking for a reflection paper that specifies what business concepts and principles y..
Write the bcd representation for the decimal values : State which of these codes are used to represent numerical values, which ones are used to represent characters, and which ones for both numerical values and characters. Give one or more applications of these four codes in digital systems.
How transactions recorded in general and subsidiary ledgers : ACC10008: Financial Information Systems Assessment: MYOB assignment. The assignment is not meant to be a data entry exercise, but you are required to carefully record each transaction to understand how transactions are recorded in both the general ..
Determine the name and description of the selected company : Identify the name and description of the selected company. Describe the problem at that company. Identify one research variable from that problem.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd