apec1201_exercise_7
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APEC 1201 : Exercise 7
Set your objective to save the maximum Total Lives Saved
Problem 1
Problem 2
Choice
1 point
1 point
Constraint
1 point
1 point
Economics is the study of how to make choices that maximize an objective, subject to constraints. This assignment is an example of an economic choice that does not use money.
In the sheet "Solver Set Up" you are running a blood donation clinic. You have six cities that have provided you with a donated supply of blood. You need to choose where to send them. The number of units supplied by each city is fixed. Tell Solver to find the answer by changing the cells of where the donations are allocated.
Mathematically, you are constrained by the fact that you cannot allocate more blood in total
to cities than has been supplied in total
. Note, we don't want to rule out the possibility that all blood will be allocated to one city, so don't add extra constraints about where these units may end up.
Note: We did not cover the differences in the algorythm methods of solving these problems, we will stick with the default GRG Nonlinear method. Problem 1: Set up the inputs of "Solver" using the guidelines above. Keep the initial allocations blank as the first seed value. Use the Answer Report feature to show your answer. Rename the report sheet "Allocation Report 1."
Problem 2: Use the same specifications for the objective, constraints, and choice varaibles. Change the initial allocations to a reasonable seed value. Use the Answer Report feature to show your answer. Rename the report sheet "Allocation Report 2". You may need to try a few different seed values to find the solution, but as a hint, you should able to save at least 150,000 lives.
To grade this, I am going to open your file, open solver, and see what you used for inputs. I should be able to click "solve" and get and answer without an error. Your grade will be based on your seletion of the following
Objective
1 point
1 point
Seed Values
1 point
1 point
How long did it take you to complete this assignment?
30 minutes
0
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Related Questions
Suppose you observe a person's answer to two decision problems.
Problem 1: You are offered $40 today. What is the minimum amount x you demand one month from
today in order to be willing to give up the $40 now? Answer: x = 52.
Problem 2: Your are offered $40 today. What is the minimum amount x you demand one year from
today in order to be willing to give up the $40 now? Answer: $60.
1. Demonstrate that the rational model of time preferences is violated for this choice pattern.
2. Derive this individual's B and d for the hyperbolic time discounting model.
3. Suppose the utility you get from eating ice cream now is 10 utils. But you pay a cost of -4 utils per
hour for the next 4 hours, because it gives you indigestion and makes you feel lethargic. If your
hourly B and d for this problem are B = .6 and d = .9, ...
1. What is the total discounted utility of eating ice cream now?
2. What is your total discounted utility now of planning to eat ice cream after lunch tomorrow?
3. Do you eat ice…
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a) Trade-offs are important part of economic decision making. You are supposed to Analyze and explain any three trade-offs that you face in your life.
b) You plan to study on weekend and your friends ask you to go to a farm house with them. What do you think is the true cost of spending your weekend on a farmhouse with friends?
c) You plan to spend your weekend working at your father’s superstore for a wage, but your friends ask you go play cricket at the weekend. What do you think is the true cost of spending your weekend playing cricket with friends?
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Katie loves swimming. Every afternoon, she visits the local swimming pool for a swim. The entry cost to the pool
costs Katie $10 but she can swim for as long as she wants. Once she has entered the pool and paid the fee, Katie
wonders how many hours should she spend swimming if she were to think like an economist. She expects to gain
an incremental benefit of $21 from the first hour of swimming, then gains subsequent incremental benefits of $17
from the second, $11 from the third and $4 from the fourth. For every hour spent swimming, it will cost Katie $6 as
she could have spent the time doing her homework.
In determining how many hours Katie should be swimming, the $10 entry fee to the pool is a/an
Type A for Average cost, M for Marginal cost, S for Sunk cost or O for Opportunity
cost.
Using marginal analysis, what is the optimal amount of hours Katie should spend swimming?
The maximum surplus for Katie, from spending the number of hours you found in part b, is $
Answer to the nearest…
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Which of the following would be the least likely thing an economist would study?
What new platforms are teens and young adults using to download music and movies?
What is the effectiveness of a new $50 million government campaign to keep teens from vaping?
What types of movies do children like to watch in the summer?
What are the health effects of new energy drinks on young consumers?
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Joab and his friends used to play a game where they put on a dog's electric fence collar and tried to stand over the electric fence line because, after careful
consideration of the costs and benefits, they decided that the benefits of watching their friends get shocked outweighed the costs of being shocked themselves.
According to the economic way of thinking, by playing this game, Joab and his friends were
O not responding to the incentives they faced.
making an irrational choice.
making a rational choice.
not fully considering the costs and benefits of their decision since this is obviously a mistake for anybody to do.
arrow_forward
Suppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bars and bags of peanuts. Candy bars cost $0.75 each while bags of peanuts cost $1.50 each. a. Construct a table showing the alternative combinations of the two products that are available. b. Plot the data in your table as a budget line in a graph. What is the slope of the budget line? What is the opportunity cost of one more candy bar? Of one more bag of peanuts? Do these opportunity costs rise, fall, or remain constant as additional units are purchased? c. Does the budget line tell you which of the available combinations of candy bars and bags of peanuts to buy? d. Suppose that you had won $30 on your ticket, not $15. Show the $30 budget line in your diagram. Has the number of available combinations increased or decreased?
arrow_forward
Marie has a weekly budget of $24, which she likes to spend on magazines and pies.
If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?
If the price of a pie is $12, what is the maximum number of pies she could buy in a week?
What is Marie’s opportunity cost of purchasing a pie?
At the start of the week, Marie decides to buy a pie. Does this imply that the utility she receives from this pie is greater than or less than her opportunity cost of purchasing the pie?
Marie is thinking about purchasing a second pie. Do we expect the marginal utility she receives from the second pie to be greater than, less than, or equal to the marginal utility she receives from the first pie? Explain your answer.
arrow_forward
Q15.) Marie has a weekly budget of $24, which she likes to spend on magazines and pies.
The price of a pie is $12.
1.) If the price of a magazine is $4 each, the maximum number of magazines she could buy in a week is m? 6 magazines
2.) If she buys 1 pie the number of magazines she can buy in a week is? 3 magazines
3.) What is her S opportunity cost of purchasing a pie? $4
What is question 4 answer?
4.) If Marie's weekly budget is $24, which she likes to spend on magazines and pies, and If the price of a pie is $12 each, what is the maximum number of pies she could buy in a week? ___
arrow_forward
Scarcity and choice are important in economics because there would be no economy if there was no scarcity (limitation in resources) and no choice as to how these resources would be used. Scarcity and choice are the founding blocks of the story of economics. Scarcity in economics refers to limited resources against unlimited wants. Choice is the alternative between them. Economics deals with the study of human behavior and how humans allocate their limited resources (scarcity) with their unlimited wants. Since we have limited resources, we usually have to choose one option (choice) and forgo the other. This phenomenon is called "opportunity cost" . Our wants change when we consume more of one particular option, Its value diminishes and we start preferring some other option. This is called 'utility' or 'diminishing utility' as a progressive term. Example: If you are in school and you only have $10 for lunch money (scarcity), you can either buy a…
arrow_forward
Describe the procedure of considering economic decisions?
arrow_forward
Brainstorm common items that you think consumers pay too much for or that you think are overpriced (i.e. movie theater popcorn, brand name items, souvenirs,, etc.). Now think of something more specific, either something that you or someone who know has purchased. For example, I know someone with a baby who was traveling and purchased a small pouch of baby food for $2.00, when even more baby food could have been purchased in a jar for around $0.50.
Write about your example, then use the principles you’ve learned about (like scarcity, opportunity cost, rationality, and marginal analysis) to explain why a person would make the decision to purchase that good.
Please respond to the questions in the form of a paragraph, making sure you use complete sentences and correct grammar and punctuation.
arrow_forward
Residents of the town of Smithfield like to consume hams, but each ham requires 10 people to produce it and takes a month. If the town has a total of 100 people what is the maximum amount of ham the resident can consume in a month?
arrow_forward
SEE MORE QUESTIONS
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Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Related Questions
- Suppose you observe a person's answer to two decision problems. Problem 1: You are offered $40 today. What is the minimum amount x you demand one month from today in order to be willing to give up the $40 now? Answer: x = 52. Problem 2: Your are offered $40 today. What is the minimum amount x you demand one year from today in order to be willing to give up the $40 now? Answer: $60. 1. Demonstrate that the rational model of time preferences is violated for this choice pattern. 2. Derive this individual's B and d for the hyperbolic time discounting model. 3. Suppose the utility you get from eating ice cream now is 10 utils. But you pay a cost of -4 utils per hour for the next 4 hours, because it gives you indigestion and makes you feel lethargic. If your hourly B and d for this problem are B = .6 and d = .9, ... 1. What is the total discounted utility of eating ice cream now? 2. What is your total discounted utility now of planning to eat ice cream after lunch tomorrow? 3. Do you eat ice…arrow_forwarda) Trade-offs are important part of economic decision making. You are supposed to Analyze and explain any three trade-offs that you face in your life. b) You plan to study on weekend and your friends ask you to go to a farm house with them. What do you think is the true cost of spending your weekend on a farmhouse with friends? c) You plan to spend your weekend working at your father’s superstore for a wage, but your friends ask you go play cricket at the weekend. What do you think is the true cost of spending your weekend playing cricket with friends?arrow_forwardKatie loves swimming. Every afternoon, she visits the local swimming pool for a swim. The entry cost to the pool costs Katie $10 but she can swim for as long as she wants. Once she has entered the pool and paid the fee, Katie wonders how many hours should she spend swimming if she were to think like an economist. She expects to gain an incremental benefit of $21 from the first hour of swimming, then gains subsequent incremental benefits of $17 from the second, $11 from the third and $4 from the fourth. For every hour spent swimming, it will cost Katie $6 as she could have spent the time doing her homework. In determining how many hours Katie should be swimming, the $10 entry fee to the pool is a/an Type A for Average cost, M for Marginal cost, S for Sunk cost or O for Opportunity cost. Using marginal analysis, what is the optimal amount of hours Katie should spend swimming? The maximum surplus for Katie, from spending the number of hours you found in part b, is $ Answer to the nearest…arrow_forward
- Which of the following would be the least likely thing an economist would study? What new platforms are teens and young adults using to download music and movies? What is the effectiveness of a new $50 million government campaign to keep teens from vaping? What types of movies do children like to watch in the summer? What are the health effects of new energy drinks on young consumers?arrow_forwardJoab and his friends used to play a game where they put on a dog's electric fence collar and tried to stand over the electric fence line because, after careful consideration of the costs and benefits, they decided that the benefits of watching their friends get shocked outweighed the costs of being shocked themselves. According to the economic way of thinking, by playing this game, Joab and his friends were O not responding to the incentives they faced. making an irrational choice. making a rational choice. not fully considering the costs and benefits of their decision since this is obviously a mistake for anybody to do.arrow_forwardSuppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bars and bags of peanuts. Candy bars cost $0.75 each while bags of peanuts cost $1.50 each. a. Construct a table showing the alternative combinations of the two products that are available. b. Plot the data in your table as a budget line in a graph. What is the slope of the budget line? What is the opportunity cost of one more candy bar? Of one more bag of peanuts? Do these opportunity costs rise, fall, or remain constant as additional units are purchased? c. Does the budget line tell you which of the available combinations of candy bars and bags of peanuts to buy? d. Suppose that you had won $30 on your ticket, not $15. Show the $30 budget line in your diagram. Has the number of available combinations increased or decreased?arrow_forward
- Marie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week? If the price of a pie is $12, what is the maximum number of pies she could buy in a week? What is Marie’s opportunity cost of purchasing a pie? At the start of the week, Marie decides to buy a pie. Does this imply that the utility she receives from this pie is greater than or less than her opportunity cost of purchasing the pie? Marie is thinking about purchasing a second pie. Do we expect the marginal utility she receives from the second pie to be greater than, less than, or equal to the marginal utility she receives from the first pie? Explain your answer.arrow_forwardQ15.) Marie has a weekly budget of $24, which she likes to spend on magazines and pies. The price of a pie is $12. 1.) If the price of a magazine is $4 each, the maximum number of magazines she could buy in a week is m? 6 magazines 2.) If she buys 1 pie the number of magazines she can buy in a week is? 3 magazines 3.) What is her S opportunity cost of purchasing a pie? $4 What is question 4 answer? 4.) If Marie's weekly budget is $24, which she likes to spend on magazines and pies, and If the price of a pie is $12 each, what is the maximum number of pies she could buy in a week? ___arrow_forwardScarcity and choice are important in economics because there would be no economy if there was no scarcity (limitation in resources) and no choice as to how these resources would be used. Scarcity and choice are the founding blocks of the story of economics. Scarcity in economics refers to limited resources against unlimited wants. Choice is the alternative between them. Economics deals with the study of human behavior and how humans allocate their limited resources (scarcity) with their unlimited wants. Since we have limited resources, we usually have to choose one option (choice) and forgo the other. This phenomenon is called "opportunity cost" . Our wants change when we consume more of one particular option, Its value diminishes and we start preferring some other option. This is called 'utility' or 'diminishing utility' as a progressive term. Example: If you are in school and you only have $10 for lunch money (scarcity), you can either buy a…arrow_forward
- Describe the procedure of considering economic decisions?arrow_forwardBrainstorm common items that you think consumers pay too much for or that you think are overpriced (i.e. movie theater popcorn, brand name items, souvenirs,, etc.). Now think of something more specific, either something that you or someone who know has purchased. For example, I know someone with a baby who was traveling and purchased a small pouch of baby food for $2.00, when even more baby food could have been purchased in a jar for around $0.50. Write about your example, then use the principles you’ve learned about (like scarcity, opportunity cost, rationality, and marginal analysis) to explain why a person would make the decision to purchase that good. Please respond to the questions in the form of a paragraph, making sure you use complete sentences and correct grammar and punctuation.arrow_forwardResidents of the town of Smithfield like to consume hams, but each ham requires 10 people to produce it and takes a month. If the town has a total of 100 people what is the maximum amount of ham the resident can consume in a month?arrow_forward
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Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning