Managerial Economics

posted by .

I am trying to understand how to variate between MC and MB using the theory of optimization the circumstance which a waste site could be made too clean. Note: Good answers are dispassionate and employ economic analysis.

Draw a graph, put cost/benefits on the y-axis, % of waste that is cleaned up on the x axis. Draw a vertical line at %100, or otherwise indicate the maximum possible cleanup. Now draw downward shaped MB curve. Employ good economic analysis on why it is downward sloping. Next draw an upward sloping MC curve. Again use good economic analysis. Anything to the right of the point where MB crosses MC is excessive cleanup -- it represents cleanup where the costs exceed the benefits.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Managerial Economics

    Looking at controlling government roles in managing health risks in society it faces from exposure to environmental pollution. One major problem that was examined was the cleanup of hazardous waste sites. Some people were extremely …
  2. Economics

    Discuss the relationship between the level of Gross Domestic Product (GDP) and economic well-being. What factors of well-being are missing from the GDP?
  3. Economics

    The role of an assumption in an economic theory is to: a. add realism b. prove the theory c. cover special cases d. simplify the theory
  4. managerial economoics

    close relationship between mnagement and economics has led to the development of managerial economics
  5. managerial economics

    U.S.Supreme Court Justice examines government's role in controlling & managing health risks. One major problem examined is cleanup of hazardous waste sites. He wish to see waste sites 100% clean. a. Explain, using theory of optimization …
  6. managerial economics

    Final Project A Final Project Is Due The Last Class Session. In Your Final Project, Describe And Answer In Economic Terms A Managerial Decision You Have Knowledge About (For Example One That Has To Be Made At Your Place Of Employment). …
  7. managerial economics

    Discussing employee benefits, using the consumer behavior theory. Question is how do you think flexible benefit packages affect an employee's preference between higher wages and more benfits?
  8. managerial economics

    Discuss the statistical significance of the parameter estimates aˆ, bˆ, cˆ, and dˆ using the p-values. Are the signs of bˆ, cˆ and dˆ consistent with the theory of demand?
  9. Economics

    Unable to find any info to answer my question I recently posted about.. role of economic theory in the way economics are run today & no clue found as to concrete examples of same...went through all your sites you suggested and looked …
  10. managerial economics

    Consider this statement: “Conservationists want to save too many spotted owls.” Use graphical analysis accompanied by a concise narrative discussion to explain circumstances under which this statement would be true. Make sure your …

More Similar Questions