Any pollution is too much pollution.”

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Managerial Economicsinfo_at_casestudyhelp.in91
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• Managerial Economics
• Q1.Evaluate the following statements using
  graphical analysis. Provide a brief narrative
  explanation of your graph to support your
  evaluation. Make sure the awes and curves in your
  graphs are properly labeled.
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• Q2.When demand for home heating oil increases, a
  shortage of heating oil will occur.
•  
• Q3.A decrease in the supply of random access
  memory (RAM) chips for personal computers causes
  a shortage of RAM chips. Using optimization
  theory, analyze the following quotations
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• a)The optimal number of traffic deaths in the
  United States is zero.
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• b)Any pollution is too much pollution.
•  
• c)We cannot pull U.S. troops of Afghanistan. We
  have committed so much already.
•  
• d)If Congress cuts out the NASA space station,
  we will have wasted all the resources that we
  have already spent on it. Therefore, we must
  continue funding it.
• e)Since Jet Green Airways has experienced a 25
  percent increase in its insurance premium, the
  airline should increase the number passengers it
  serves next quarter order to spread the increase
  in premiums over a larger number of tickets.

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• Q4.Two partners who own progressive Business
  Solutions, which currently operates out of an
  office in a small town near Boston, just
  discovered a vacancy in an office building in
  downtown Boston. One of the partners favors
  moving downtown because she believes the
  additional business gained by moving downtown
  will exceed the higher rent at the downtown
  location plus the cost of making the move. The
  other partner at PBS opposes moving downtown. He
  argues, we have already paid for office
  stationery, business cards, and a large sign that
  cannot be moved or sold. We have spent so much on
  our current office that we cant afford to waste
  this money by moving now. Evaluate the second
  partners advice not to move downtown.

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• a) Given that Bill can consume only 167 grams of
  carbohydrates daily, how many cups of each food
  will he consume daily? Show your work.
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• b) Suppose Bills doctor tells him to further
  reduce his carbohydrate intake to 126 grams per
  day. What combination will he consume?
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• Q5.At a management luncheon, two managers were
  overheard arguing about the following stamen A
  manager should never hire another worker if the
  new person causes diminishing returns. Is this
  statement correct? If so, why? If not, explain
  why not.

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