Chapter 3 Applied Problems
2. Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in it mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P

Where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR = 1,000 – 10P
How much pollution reduction should Appalachian Coal Mining undertake?

If Appalachian Coal Mining decided to install additional capital equipment, they would decrease the amount of pollution that their company produces. This installation of additional capital equipment will also lead to an increase in labor productivity. However, when assessing the benefit that this equipment will produce, one must also take into consideration the additional costs of such activity. When assessing this situation, one must make sure that the costs are not greater than or equal to the benefits, thus offsetting any benefit from installing the equipment and the pollution reduction.

In order to determine whether or not the cost of installing the capital equipment outweighs the benefits of the equipment, one must fix the level of pollution reduction and determine the optimal level of pollution reduction. According to our text, “the optimal level of the activity—the level that maximizes net benefit—is attained when no further increases in net benefit are possible for any changes in the activity, which occurs at the activity level for which marginal benefit equals marginal cost: MB = MC” (Thomas & Maurice, 2011, p. 97). In other words, the optimal value for pollution reduction is found when the marginal cost equals the marginal revenue.

To find the optimal value, one would set the marginal cost equal to the marginal revenue and solve for P.

...Statistics Problems
1) Ask 10 people (try to get 5 males and 5 females) the following questions
A) Their ages
B) How many vitamins they take daily
C) How many carbonated sodas they drink each day
D) How many alcoholic beverages they drink per month
E) Write your own question. Ask your participants if they agree with something or if they do something. For example, you may want to ask them if they eat popcorn when they go to the movies or if they support a political...

...Exercises and Problems –W2
E9-1
The following expenditures relating to plant assets were made by Spaulding Company during the first 2 months of 2011.
1. Paid $5,000 of accrued taxes at time plant site was acquired.
2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit.
3. Paid $850 sales taxes on new delivery truck.
4. Paid $17,500 for parking lots and driveways on new plant site.
5. Paid...

...ECO 550 WEEK2 CHAPTER 3 AND CHAPTER 4 PROBLEMS
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Chapter 3: Problems 3, 4, and 7
3. The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1,500/day to 1,800/day. Compute the arc price elasticity of demand over this price and consumption quantity range.
4. The subway fare in your town has just been increased...

...the reasons for sampling. Give an example of each reason for sampling.
1. Contacting whole population is time consuming. If the population is California residents, it will take a long time to send everyone a survey and then process the results.
2. Contacting whole population is costly. Same example of California residents, it will be very costly to send by mail a survey to all residents and then process millions of responses.
3. Checking all population is physically...

...University of Phoenix Material
Week Two Practice Problems
Prepare a written response to the following questions.
Chapter 2
12. For the following scores, find the mean, median, sum of squared deviations, variance, and standard deviation:
1,112; 1,245; 1,361; 1,372; 1,472
Mean 1312.4
Median 1361
Variance 123.36
Sum of squares 76089.2
Standard diviation 76089.2/5=15217.84=SQR 123.36
16. A psychologist interested in political behavior...

...ECO550
July 20, 2013
Forecasting 2
1. Use Excel or other calculation software to input the data to calculate an estimated regression. Then, from the calculation provided, interpret the coefficient of determination, indicating how it will influence your...