Reflect on the concepts and differences between benefit, marginal benefit, cost, and marginal cost. We have...

Reflect on the concepts and differences between benefit, marginal benefit, cost, and marginal cost. We have applied these ideas to several scenarios: tax rates, how many employees should a firm hire, and how many years of education should an individual pursuit. Outside of the examples we have discussed, describe an application of the ideas of marginal benefit/cost to a situation in your personal or professional life. Clearly explain the difference between total benefit and marginal benefit and total cost and marginal cost in the context of your example.

Solutions

Expert Solution

Total benefits are the overall benefits which has been derived by an individual out of any project or any commodity whereas marginal benefits will mean that all such benefits which will be derived by an any individual by having any additional unit of product so it is additional benefit which has been derived by any consumer.

Total benefits are generally the sum of overall marginal benefits, whereas marginal benefits will be related to additional benefits derived out of consumption of any additional product.

Total cost is the combination of all the fixed as well as variable cost associated with production in a company whereas marginal cost will be the cost related to production of any additional cost and unit of product.

Total cost will be combination of all the marginal cost and marginal cost are individually represented.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Explain the following concepts (draw a graph if need) 1) Marginal benefit equal marginal cost in...

Explain the following concepts (draw a graph if need) 1) Marginal benefit equal marginal cost in competitive equilibrium. 2) Deadweight Loss, Economic surplus and economic efficiency 3) Government Intervention by way of a price floor and a price ceiling.

How do you use the concepts of marginal cost and marginal benefit when making decisions daily?...

How do you use the concepts of marginal cost and marginal benefit when making decisions daily? The goal is for us to evaluate how often we use a benefit-cost analysis in marginal terms in our daily lives, without realizing it, and how to improve our decision-making after a careful evaluation of all relevant costs and benefits involved. What is your opportunity cost of attending classes on campus? For the purposes of keeping things simple, focus on finding the opportunity cost,...

The relationship between marginal social cost and marginal social benefit by plotting the necessary graphics

The relationship between marginal social cost and marginal social benefit by plotting the necessary graphics.

Suppose we have a competitive labor market. What is the marginal benefit to the firm...

Suppose we have a competitive labor market. What is the marginal benefit to the firm of hiring another worker? Explain why. What is the marginal cost to the firm of hiring another worker? How does the firm decide how many workers to hire in the short run? In the long run, capital is no longer fixed Explain how this changes the labor decision for the firm. What is the main difference between labor demand in the short run and...

Describe the differences between cost-effectiveness analysis and cost-benefit analysis as they pertain to the issue of...

Describe the differences between cost-effectiveness analysis and cost-benefit analysis as they pertain to the issue of building a pipeline from Alberta to B.C for the purpose of exporting bitumen to Asian markets.

Explain the essential differences between full cost pricing and marginal cost pricing strategies.

Marginal Cost and Marginal Benefit Suppose you are given a benefit equation as B(t) = -3t2...

Marginal Cost and Marginal Benefit Suppose you are given a benefit equation as B(t) = -3t2 + 15t + 160 and cost equation as C(t) = t2 -5t + 60, where t = time in hours. Find a NB equation. b. Solve for MB, MC, and find a MNB expression. c. Find the optimal amount of time you should spend on the activity and the value of NB associated with that optimal time. d. If you were given the following...

Marginal Analysis: Draw and explain the Marginal Benefit (MB) – Marginal Cost (MC) model. Use marginal...

Marginal Analysis: Draw and explain the Marginal Benefit (MB) – Marginal Cost (MC) model. Use marginal analysis to analyze the proper amount of pollution clean-up efforts in the Chesapeake Bay. Make a graph illustrating marginal benefits and marginal costs. Explain the analysis. Why does the intersection between the MB and MC curves illustrate the optimal level of pollution clean-up? The PPF: Draw a Production Possibilities Frontier (PPF) for the production of two goods, machine tools (a capital good) and donuts...

Suppose the Marginal Private Cost of baking bread = $2000 + 3.5Q and the Marginal Benefit...

Suppose the Marginal Private Cost of baking bread = $2000 + 3.5Q and the Marginal Benefit of baking bread = $5500-2Q. Bread production is also accompanied by a constant $500 per loaf External Cost due to allergic downwind residents who are harmed by the smell of baking bread. What is the market quantity of the unregulated market for bread? What is the socially optimal quantity? The pollution victims form an advocacy group, which argues that enacting and enforcing a command...

Marshmallow fluff is a local monopoly firm. We have its marginal cost and marginal revenue as...

Marshmallow fluff is a local monopoly firm. We have its marginal cost and marginal revenue as follows: MC=80+2Q and MR=200-Q. ( a) Calculate consumer surplus (CS) and deadweight loss (DWL) b) Graphically illustrate your answers.

Subjects