Purchase Solution

Rule of Maximization

Not what you're looking for?

Ask Custom Question

#1 Earlier we noted that the rule for maximization set forth in the text contradicts some well honored traditional principles such as " Never give up", "Anything worth doing is worth doing well," or "Waste not. want not." Explain the contradiction for each of these rules

#2 Many candidates for political office, particularly in local elections call for the increased government spending on public education. Ignoring the politics of the issue:
A. Is it possible for govt to spend too much on Education? Explain
B. How would you advise govt officials to determine how much to spend on education?
C. If a city govt has a given budget to spend on education, street repair police, how would you advise the govt to determine how to allocate these funds?

Purchase this Solution

Solution Summary

The solution answers the question(s) below.

Solution Preview

"Never give up." In economics, sometimes you must give up. For example, for a producer, his problem is to find out his optimal production level. In short run, producers need to ignore the fixed cost. They can not always worry about the fixed cost when they make a decision. Fixed cost here is a kind of sunk cost, which sometimes you must give up.
"Anything worth doing is worth doing well."
Similar to the previous words, after you ...

Purchase this Solution

Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.