Please show all work for this quiz and explain your derivations.
Please show all work for this quiz and explain your derivations. Lack of step-by-step work will not be credited. Partial credit will be given for step-by-step description of answer. In your own words, describe the meaning of average cost. You normally buy a crate of wine for $75. One crate has 6 bottles of wine. After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in a crate. To the nearest cent, determine the average cost of the crate from last month to now.
The average cost is the average cost or mean cost per unit for a product. As for example suppose we bought a set of products at some price then the average cost per unit would be the total cost divided by the number of units which tells us if we want to buy each unit individually, what is the general cost we can expect.
Here,
Average cost for a bottle last month = Total cost/ Number of bottles = $75/6 = $12.50 Average cost for a bottle this month = Total cost/ Number of bottles = $82/7 = $11.71
In your own words, describe the meaning of marginal cost. You normally buy a crate of wine for $75. One crate has 6 bottles of wine. After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in a crate. To the nearest cent, determine the marginal cost for one additional bottle of wine now.
The marginal cost is the change in the total cost for per unit change in total number i.e. what is the cost of the last unit produced. As in production the cost of each unit varies as the production becomes large (or small) so we need to know what is the cost to make the last individual unit and that is the marginal cost.
In this case the number of bottles is increasing by 1 and the cost is increasing by some dollars so using the formula,
Marginal cost for one additional bottle of wine now = ($82-$75)/(7-6) = $7
In your own words, describe the meaning of unit travel. When traveling on a Greyhound bus, without intervention or obstruction, it is important to determine the unit travel time. If you leave Cleveland in a bus full of 24 passengers and arrive Cincinnati in 3 hours, what will be the average unit travel time in person minutes?
The unit travel is the average time taken by each person to cover some distance. The definition tells us that if a group of people cover some distance in some time then what is the average time each person took.
Here there are 24 passengers and they took 3 hours or (3*60) = 180 minutes to arrive Cincinnati so the average unit travel time in person minutes = 180/24 = 7.5 minutes per person.
What is CPI? Given that the CPI trends for travel time for 2010 and this year are 183.42 and 191.35 respectively, calculate the current value of travel time if it was $24.50 per hour in 2010.
The CPI or consumer price index is a measurement to measure how the purchasing power of households are changing or in other terms it measures changes in the price level of a market basket of consumer goods and services purchased by households. It is always calculated with respect to a base year as for example the CPI is 109 implying that the same items which cost $100 in base year costs $109 now.
Here cost of travel time in 2010 = $24.50 and CPI for 2010 = 183.42
So, cost of travel time in base year = $24.50*100/183.42 = $13.36
Cost of travel time in this year = $13.36*191.35/100 = $25.56 After 17 vehicular accidents two years ago in a given intersection, the mayor of Boulder proposed to reduce the number of crashes by making improvements at the intersection. Assuming the appropriate CRF is 0.53, what will be the reduction in number of crashes at that intersection achieved by the mayor?
As here the CRF is 0.53 as compare to the base year so,
The reduction in number of crashes at that intersection achieved by the mayor = 17*0.53 = 9