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March 24, 2017

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Using optimization theory, analyze the following quotations:
a. “The optimal number of traffic deaths in the United States is zero.”
b. “Any pollution is too much pollution.”
c. We cannot pull U.S. troops out of Iraq. We have committed to such 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 JetGreen Airways has experienced a 25% increase in its insurance premiums, the airline should increase the number of passengers it serves next quarter in order to spread the increase in premiums over a larger number of tickets.”

  • managerial economics - ,

    I will be happy to critique your responses. These are very evident.

  • managerial economics - ,

    I did get a laugh out of e. It reminded me of a car dealer years ago in Austin, that he advertised he lost money on every sale, but he made it up in volume.
    I think Airlines pay insurance based on passenger miles.

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