Chapter 3 Applied Problems 2. Appalachian Coal Mining should downplay net cost by choosing that direct of defilement (P) where the b be(a) benefit of taint 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 unwashed tax revenue are expected to occur. b is expected to beget a positive sign since cutting edges gross revenue are positively related to its level of advert 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 silver side of meat purifying when nei ther Vanguard nor its rivals advertise. b is ?S/?A, the accession in glinting Side gross revenue attributable to a $1,000 per week growth 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 significance of is 0.0128. There is besides a 1.

28% possibility that b = 0, which is bankrupt 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 that rivals spen ding on advertising does not mint Vanguards! sales (i.e., b = 0), which is just barely better than the 10 percentage level required by the merchandising 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 exertion 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 dear essay, order it on our website:
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