Complete the following table and answer the accompanying questions. Control Variable Total Benefits Net Benefits Marginal Benefit Marginal Cost Marginal Net B (Q) Total Cost C(Q) Benefits N(Q) MB (Q) MC (Q) Benefit MNB (Q) 100 1, 200 950 210 60 101 1, 400 70 102 1, 590 80 103 1, 770 90 104 1,940 100 105 2, 100 110 106 2, 250 120 107 2,390 130 108 2, 520 140 109 2,640 150 110 2,750 160 a. At what level of the control variable are net benefits maximized? 108 2,520 140 109 2,640 150 110 2,750 160 a. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at this level of the variable? O Marginal cost is much larger than marginal benefit. O Marginal cost is slightly larger than marginal benefit. O Marginal cost is slightly smaller than marginal benefit. O Marginal cost is much smaller than marginal benefit. Prev 1 of 10 Next >8 points eBook References As a marketing manager for one of the world's largest automakers, you are responsible for the advertising campaign for a new energy-efficient sports utility vehicle. Your support team has prepared the following table, which summarizes the (year- end) profitability, estimated number of vehicles sold, and average estimated selling price for alternative levels of advertising. The accounting department projects that the best alternative use for the funds used in the advertising campaign is an investment returning 9 percent. In light of the staggering cost of advertising (which accounts for the lower projected profits in years 1and 2 for the high and moderate advertising intensities), the team leader recommends a low advertising intensity in order to maximize the value of the firm. Profits (in millions) Units Sold (in thousands) Average Selling Price Advertising Intensity Year 1 | Year 2 | 1e | ee | 126 [s$35,e0e | 536,500 | 533,600 @ 3 3 s 5 12.5 | 4 | 6 [ 7.2 |s$3s,00e |s$36,250 [ 936,000 | Do you agree? Explain. Prey 4 of 10 You are the manager in charge of global operations at BankGlobal a large commercial bank that operates in a number of countries around the world. You must decide whether or not to launch a new advertising campaign in the U5, market. Your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on U.S. operations. In addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the U.S. advertising campaign were launched. Your goal is to maximize BankGlobal's value. _ Pre-Advertising Campaign |Post-Advertising Campaign 518,618,900 I 5,758,35@ I.958,580 7,710,530 0000000000000 Depreciation - computer equipment 1,500,008 1,588,800 1. 500,060 5,458,108 2,003, 500 70451 000 Variable Cost TV Airtime 5, 750,350 8, 610, 400 Ad development labor 1, 960,580 3, 102, 450 Total variable costs 7, 710,930 11, 712, 850 Direct Fixed Cost Depreciation - computer equipment 1, 500,000 1, 500, 000 Total direct fixed cost 1, 500,000 1, 500, 000 Indirect Fixed Cost Managerial salaries 8, 458,100 8, 458, 100 Office supplies 2, 003,500 2, 003, 500 Total indirect fixed cost $10, 461,600 $10, 461, 600 Should you launch the new campaign? Explain.You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. A recent report indicates that nearly 50 Americans contract HIV each year through blood transfusions. Although every pint of blood donated in the United States undergoes a battery of nine different tests, existing screening methods can detect only the antibodies produced by the body's immune system not foreign agents in the blood. Since it takes weeks or even months for these antibodies to build up in the blood, newly infected HIV donors can pass along the virus through blood that has passed existing screening tests. Happily, researchers have developed a series of new tests aimed at detecting and removing infections from donated blood before it is used in transfusions. The obvious benefit of these tests is the reduced incidence of infection through blood transfusions. The report indicates that the current price of decontaminated blood is $60 per pint. However, if the new screening methods are adopted, the demand and supply for decontaminated blood will change to Q%=210-1.5Pand @=2.5P - 150. What price do you expect to prevail if the new screening methods are adopted? How many units of blood will be used in the United States? What is the level of consumer and producer surplus? lllustrate your findings in a graph. Instruction: Enter your response rounded to the nearest whole number. Price:$[ ] Che Price: $ Units of blood: Consumer surplus: $ Producer surplus: $ Instructions: Use the tools provided to graph the supply and demand curves from 0 to 150 pints of blood (two poi for each curve). Indicate consumer and producer surplus. 160 Tools 140 120 Supply Demand 100 pint Prev 6 of 10 NextYou are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands such as Coca-Cola and Pepsi. Suppose that, due to the successful lobbying efforts of sugar producers in the United States, Congress is going to levy a $0.50 per pound tariff on all imported raw sugar the primary input for your product. In addition, Coke and Pepsi plan to launch an aggressive advertising campaign designed to persuade consumers that their branded products are superior to generic soft drinks. How will these events impact the equilibrium price and quantity of generic soft drinks? In a recent speech, the governor of your state announced: \"One of the biggest causes of juvenile delinquency in this state is the high rate of unemployment among 16 to 19 year olds. The low wages offered by employers in the state have given fewer teenagers the incentive to find summer employment. Instead of working all summer, the way we used to, today's teenagers slack off and cause trouble. To address this problem, | propose to raise the state's minimum wage by $1.50 per hour. This will give teens the proper incentive to go out and find meaningful employment when they are not in school\" Evaluate the governor's plan to reduce juvenile delinquency. You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd =250 = 5P and the market supply (including taxes) is QS =3P =130 (both in millions), where P is the monthly price of the telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of GS =3.2P - 130. How much money per unit would a typical consumer save each month as a result of the proposed legislation? Instruction: Enter your response rounded to the nearest penny (two decimal places). s ] You are the manager of a midsized company that assembles personal computers. You purchase most components = such as random access memory (RAM) = in a competitive market. Based on your marketing research, consumers earning over $80,000 purchase 1.5 times more RAM than consumers with lower incomes. One morning, you pick up a copy of The Wall Street Journal and read an article indicating that input components for RAM are expected to rise in price, forcing manufacturers to produce RAM at a higher unit cost. Based on this information, what can you expect to happen to the price you pay for random access memory? Would your answer change if. in addition to this change in RAM input prices, the article indicated that consumer incomes are expected to fall over the next two years as the economy dips into recession? Explain