Question

The following functions show the relationship between price, costs and the number of dogs receiving a...

  1. The following functions show the relationship between price, costs and the number of dogs receiving a rabies vaccine.

MPB = 90 – 4Q; MSB = 80 - 4Q; MC: P = 30 + Q;

  1. Assume the rabies vaccine is $35 on the market. Will consumers get the rabies vaccine for their dogs?
  2. From the societal perspective, should consumers get the rabies vaccine for their dogs?

Homework Answers

Answer #1

Q

MPB

MSB

MC

P=MR

0

90

80

30

35

5

70

60

35

35

10

50

40

40

35

15

30

20

45

35

20

10

0

50

35

25

-10

-20

55

35

A. As the MSB and MPB is greater than the cost associated at price of $35, the consumers would get the rabies vaccine for their dogs.

B. From the social perspective, the rabies would yield in positive externality and hence consumers should get their dogs vaccinated with rabies

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. The data below show the historical relationship between production levels and overhead costs at your...
1. The data below show the historical relationship between production levels and overhead costs at your company. a) Construct a scatterplot of y versus x. b) Find the least-squares regression line (i.e., calculate the coefficients and show the equation) relating overhead costs to production. c) Graph the regression line on the plot. It is recommended that you use Excel to create the scatterplot, but do not use the Excel functions to calculate the slope and intercept of the regression line....
Nimbus, Inc. makes brooms and then sells them door-to-door. The table below demonstrates the relationship between...
Nimbus, Inc. makes brooms and then sells them door-to-door. The table below demonstrates the relationship between the number of workers and Nimbus’s output in a given day. The firm experiences fixed costs of $200, and its variable cost (workers) is $100 per worker per day. The broom industry is perfectly competitive. Fill in the table below: Number of Workers Brooms (Total Output) Q Marginal Product MP Fixed Cost FC Variable Cost VC Total Cost TC Avg Fixed Cost AFC Avg...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
Read the following case carefully and then answer the questions. In the movie Face/Off, John Travolta...
Read the following case carefully and then answer the questions. In the movie Face/Off, John Travolta got a new look by exchanging faces with Nicolas Cage. Unfortunately, he got a lot of trouble along with it. John could receive a much less troublesome new look by using Botox, a treatment discovered by Vancouver’s Dr. Jean Carruthers, who came upon the cosmetic potential of Botox in 1982 while treating a woman with eye spasms. Botox is marketed by Allergan, a specialty...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT