1.

Applying cost-benefit analysis, a business should only purchase a large machine if the business (1 point)

can pass the cost of the machine onto consumers

projects sales growth based on the machine's use

estimates that the machine's cost is less than the revenue it will generate

assigns a high utility to the machine based on consumer perceptions

has enough financial capital to replace the machine in five years

2.

Consider the market equilibrium supply and demand schedule For Edward and all other consumers. Market Supplyr Edward's Demand Total Demand excluding Edward Price Quantity Quantity Quantity $10 100 5 225 $20 200 4 195 $30 300 3 175 $40 400 2 145 $50 500 l 108 what is the quantity of the product that Edward buys when the market is in equilibrium? (1 point) Review the table below. Quantity Marginal Private Cost Marginal Social Cost Marginal Private Benefit Marginal Social Benefit 10 $10 $15 $40 $40 20 $15 $20 $35 $35 30 $20 $25 $25 $25 40 $30 $30 $15 $15 What is the socially optimal quantity of the good shown? (1 point) 0 Indeterminate Consider the following supply schedules for Shelby, Pat, and Lanelle, who are the only producers of widgets: Shelby Pat La nelle Price per Widget Widgets Produced $500 120 so 40 $400 110 50 30 $300 90 4o 20 $200 50 20 10 $100 20 10 o If the equilibrium quantity is 150 widgets, what is the equilibrium price? [1 point) Megan and Martha own competing hair salons that are located in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers. Martha Discount No Discount Megan Discount $50, $75 $75, $60 No Discount $35, $90 $70, $85 Is there a Nash equilibrium with this payoff matrix? If so, what is it? (1 point) Martha will offer a discount; Megan will not offer a discount. Martha will not offer a discount; Megan will not offer a discount. Martha will not offer a discount; Megan will offer a discount. Martha will offer a discount; Megan will offer a discount. There is no Nash equilibrium with this payoff matrix