内容发布更新时间 : 2024/5/26 21:06:42星期一 下面是文章的全部内容请认真阅读。

Chapter 1: The Fundamentals of Managerial

Economics

Answers to Questions and Problems

1. 2.

The maximum you would be willing to pay for this asset is the present value, which is

Producer-producer rivalry best illustrates this situation. Here, Southwest is a producer attempting to steal customers away from other producers in the form of lower prices.

3. a. Net benefits are N(Q) = 20 + 24Q – 4Q2.

b. Net benefits when Q = 1 are N(1) = 20 + 24 – 4 = 40 and when Q = 5 they are N(5) = 20 + 24(5) – 4(5)2 = 40.

c. Marginal net benefits are MNB(Q) = 24 – 8Q.

d. Marginal net benefits when Q?1 are MNB(1) = 24 – 8(1) = 16 and when Q?5 they are MNB(5) = 24 – 8(5) = -16.

e. Setting MNB(Q) = 24 – 8Q = 0 and solving for Q, we see that net benefits are maximized when Q = 3.

f. When net benefits are maximized at Q = 3, marginal net benefits are zero. That is, MNB(3) = 24 – 8(3) = 0.

4. a. The value of the firm before it pays out current dividends is

.

1

? 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

b. The value of the firm immediately after paying the dividend is

.

5.

The present value of the perpetual stream of cash flows. This is given by

The completed table looks like this: Control Variable Q 100 101 102 103 104 105 106 107 108 109 110 Total Benefits B(Q) 1,200 1,400 1,590 1,770 1,940 2,100 2,250 2,390 2,520 2,640 2,750 Total Cost C(Q) 950 1,020 1,100 1,190 1,290 1,400 1,520 1,650 1,790 1,940 2,100 Net Benefits N(Q) Marginal Benefit MB(Q) Marginal Cost MC(Q) Marginal Net Benefit MNB(Q) 150 130 110 90 70 50 30 10 -10 -30 -50 6.

250 210 60 380 200 70 490 190 80 580 180 90 650 170 100 700 160 110 730 150 120 740 140 130 730 130 140 700 120 150 650 110 160 a. Net benefits are maximized at Q = 107.

b. Marginal cost is slightly smaller than marginal benefit (MC = 130 and MB = 140). This is due to the discrete nature of the control variable.

7. a. The net present value of attending school is the present value of the benefits derived

from attending school (including the stream of higher earnings and the value to you of the work environment and prestige that your education provides), minus the opportunity cost of attending school. As noted in the text, the opportunity cost of attending school is generally greater than the cost of books and tuition. It is rational for an individual to enroll in graduate when his or her net present value is greater than zero.

b. Since this decreases the opportunity cost of getting an M.B.A., one would expect more students to apply for admission into M.B.A. Programs.

2

? 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

8. a. Her accounting profits are $170,000. These are computed as the difference between

revenues ($200,000) and explicit costs ($30,000).

b. By working as a painter, Jaynet gives up the $110,000 she could have earned under her next best alternative. This implicit cost of $110,000 is in addition to the $30,000 in explicit costs. Since her economic costs are $140,000, her economic profits are $200,000 - $140,000 = $60,000.

9. a. Total benefit when Q = 2 is B(2) = 20(2) – 2 × 22 = 32. When Q = 10, B(10) = 20(10)

– 2 × 102 = 0.

b. Marginal benefit when Q = 2 is MB(2) = 20 – 4(2) = 12. When Q = 10, it is MB(10) = 20 – 4(10) = -20.

c. The level of Q that maximizes total benefits satisfies MB(Q) = 20 – 4Q = 0, so Q = 5.

d. Total cost when Q = 2 is C(2) = 4 + 2 × 22 = 12. When Q = 10 C(Q) = 4 + 2 × 102 = 204.

e. Marginal cost when Q = 2 is MC(Q) = 4(2) = 8. When Q = 10 MC(Q) = 4(10) = 40.

f. The level of Q that minimizes total cost is MC(Q) = 4Q = 0, or Q = 0.

g. Net benefits are maximized when MNB(Q) = MB(Q) = MC(Q) = 0, or 20 – 4Q – 4Q = 0. Some algebra leads to Q = 20/8 = 2.5 as the level of output that maximizes net benefits.

10. a. The present value of the stream of accounting profits is

b. The present value of the stream of economic profits is

3

? 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.