# economics

I really have to figure out the answers to these questions and i don't know where to start. I don't know how to draw the marginal benefit and marginal cost curves for this question.

a.Sketch a marginal benefit and marginal cost diagram, with “billions of units of security per month” on the horizontal axis and the marginal cost and marginal benefit, measured in “all other goods per unit of security” on the vertical axis. What is the relationship between this diagram and the production possibilities diagram to the right? What is the pre-9-11 efficient quantity of security services? How is this quantity determined?

b.How did the catastrophic events of 9-11 affect the marginal benefit and marginal cost diagram? (Hint: One of the curves shifted). Draw a diagram showing the post-9-11 marginal benefit and marginal cost diagram. What is the new efficient quantity of security services? How does this new point relate to the discussion in the Wall Street Journal article about the costs being imposed on the public from enhanced security?

The link to the ppf for this question is here:
img170.imageshack.us/img170/7894/ppfiq2.jpg

I see the web site you cited, it is a picture of a production possibilities frontier, with Security on the x axis and Everything Else on the y axis.
With this you can calculate the marginal cost curve, but little else.
How much Everything do you have to give up to get the first unit of Security. From your graph, you go from 41 units to 40 units; about 1 unit of Everything. Now, how much to get the second unit of Security. From your graph, about 5 units of Everything. Continue with each additional unit of Security. So now you have something to plot. It should be an upward sloping cost curve. Remember Opportunity Cost; the cost of more security is getting less of something else.

Now then, the figure says nothing about security benefits. That said, the marginal benefits curve should be a downward sloping curve. Where the curves cross (i.e, where the marginal cost = the marginal benefit) is the optimal point.

Generally speaking, 9-11 did not affect the production possibilities curve, so the marginal cost curve stays fixed. However, the perceived need for security increased. That is, the marginal value of security rose at each level of security production. That is, the marginal benefit curve shifted outward.

But how do i calculate the marginal benefit, i know that the marginal cost is the slope of the PPF and its upward sloping but how would i know how to calculate the marginal benefit and then draw the curve for it.

Yeah omg, i know, im doing the same assignment HELP SOMEONE!!

1. 👍
2. 👎
3. 👁

## Similar Questions

1. ### Probability/Statistics

A quiz consists of 10 multiple-choice questions, each with 4 possible answers. For someone who makes random guesses for all of the answers, find the probability of passing if the minimum passing grade is 70 %. I'm not sure what to

2. ### Algebra

A sequence is defined recursively by the following rules: f(1)=3 f(n+1)=2⋅f(n)−1 Which of the following statements is true about the sequence? Select all that apply. f(5)=33 f(3)=10 f(4)=18 f(6)=66 f(2)=5 I cannot seem to

3. ### Penn Foster

I am looking for the questions to these exams..all I keep getting are the darn answers...I want to compare my answers before I submitt anyone have the orginal questions? to these Anyone have the questions for the penn foster exams

4. ### probability

a multiple choice test consists of 8 questions, each with 4 possible answers but only one of which is correct.what is the probability that an unprepared student will, by chance, get, a. all correct answers, b. exactly 5 correct

1. ### Math check my answers

Please check my answers on the following questions Simplify: (X^6)^1/2 = x^3 1000000^1/6 I don't know this one (64n^12)^-1/6 = 1/0.5n^2 (9n^4)^1/2. = 3n^2 36^3/2 = my answer is 2 in the index of the aware root of 36^3 343^-4/3 I

2. ### Chem II

Which of the follwoing gives the molarity of 17.0% by mass solution of sodium acetate (molar mass = 82.0 g/mol) in water. The density of the solution is 1.09 g/mL. OK - I know that to figure molarity is moles divided by liters.

3. ### college

Biographical information blanks are difficult for applicants to fake because A. the questions don’t have predictable, correct answers. B. they require detailed answers. C. they’re administered by extremely knowledgeable

4. ### geometry math algebra

i have unit 6 lesson 9 geometry foundations b surface area and volume unit test for questions 8 and 9: 8. what are the lateral area and surface area of the cone shown below? round the answers to the nearest tenth. the figure is

1. ### MATH

A quiz consists of 90 multiple-choice questions, each with 4 possible answers (A, B, C and D). For someone who makes random guesses for all of the answers, find the probability of getting A as right answer. A is the correct answer

2. ### Statistics

I need help with this problem. I think I have some of the answers right but I'm not sure. There is a data set consisting of 33 whole-number observations. Its five number summary is (16, 20, 22, 30, 46) 1. How many observations are

3. ### Inversions for Permutations

How can I figure out how many inversions of permutations? I have the answers but I don't know how to get there. Questions: (1,2,3,4) has 0, (4,1,3,2) has 4 , and (4,3,2,1) has 6.

4. ### English Expression

Q1) I'm sorry. That's all right. Think nothing of it. It's nothing. Not at all. Think nothing of it. Q2) Thank you. You're welcome. Don't mention it. Not at all. It's my pleasure. It's nothing. Are the answers to the two questions