Your neighbor likes to blast 1970's rock music and the louder the better.The loud music imposes a cost on you because it disrupts your study of economics.Let D stand for the volume of his music in decibels,B for his benefits and C for your costs,where B and C are measured in dollars.For any given volume,D,your neighbor's benefit is B = 0.63D - 0.002D² and your cost is C = 0.06D + 0.001D².What is the efficient volume,D?

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Quizplus · Accepted Answer

The efficient volume D is the one where the total benefit is equal to the total cost, i.e., B=C. Substituting the given equations for B and C, we get: 0.63D - 0.002D² = 0.06D + 0.001D² 0.57D = 0.001D² D = 95.18 However, since decibels are usually measured in whole numbers, we round off to the nearest whole number which is 95. Therefore, the efficient volume that balances the benefits and costs is 95 decibels.

Your Neighbor Likes to Blast 1970's Rock Music and the Louder