Chapter 3 Applied Problems 2. Appalachian Coal Mining should disparage net cost by choosing that direct of defilement (P) where the peripheral benefit of defilement reduction equals the marginal cost of pollution reduction: 1,000 10P = 40P P* = 20 units of pollution. 4. a. 2 b. $500 (= $25 ´ 20 radios not stolen due to hiring 1 guard) c. 4 Chapter 4 Applied Problem 1. a. The cease a is expected to be positive because even if no advertise is undertaken, some crude taxation are expected to occur. b is expected to shoot a positive sign since forefronts gross revenue are positively related to its level of publicize expenditures. Vanguards gross revenue should be inversely related to its rivals expenditures on advertising, so c is expected to be negative. b. a is the gross revenue of ardent side of meat purifying when neither Vanguard nor its rivals advertise. b is ?S/?A, the accession in silvern Side gross revenue attributable to a $1,000 per week sum up in advertising expenditures by Vanguard. c is ?S/?R, the decrease in Bright Side sales attributable to a $1,000 per week increase in advertising expenditures by Vanguards rivals. c. The exact level of signification of is 0.0128. There is besides a 1.
28% ascertain that b = 0, which is improve than the 10 per centum level required by the merchandise director. d. The exact level of significance of is 0.0927. There is a 9.27% chance t hat rivals spending on advertising does not ! mint Vanguards sales (i.e., b = 0), which is just barely better than the 10 percentage level required by the marketing director. e. About 78 percent of the variation in sales remains unexplained. rule additional explanatory variables that have a significant affect on S. The manager might examine adding the price of its detergent and the prices of its rivalsdetergents. f. = 175,086 + 0.855 ´ 40,000 0.284 ´ 100,000 =...If you want to get a exuberant essay, order it on our website: OrderCustomPaper.com
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