Refer to Table 18-2. The table above lists three policy ...

[jho37]

Refer to Table 18-2. The table above lists three policy alternatives that the U.S. Senate will vote on, along with the ranking of these alternates.
 
  The Senate must decide which of these alternatives should receive an additional 1 billion of funding, and there is enough money in the federal budget for only one of these alternatives. If a series of votes is taken in which each pair of alternatives is considered (homeland security and education; homeland security and medical research; education and medical research) which of the following will result from these votes?
  A) The results will illustrate the voting paradox.
  B) When the vote is between homeland security and education, the Senators will vote for education to receive funding.
  C) The results from the voting will illustrate the median voter theorem.
  D) The Senators' votes will demonstrate transitivity.

Question 2

Explain how the listed events (a-d) would affect the following at Hilton Hotels.
 
  i. Marginal cost
   ii. Average variable cost
  iii. Average fixed cost
  iv. Average total cost
 
  a. Hilton decides on an across-the-board 5 percent increase in executive salaries.
  b. Hilton decides to eliminate all print advertising.
  c. Hilton signs a new contract with the Culinary Workers Union that requires the company to increase wages for all its kitchen workers.
  d. The federal government starts to levy a 5 room tax on all hotel rooms.

[Tonny]

Answer to Question 1

A

Answer to Question 2

a. Average fixed cost and average total cost will increase; marginal cost and average variable cost will be unaffected.
c. Average fixed cost and average total cost will decrease; marginal cost and average variable cost will be unaffected.
c. Marginal cost, average variable cost and average total cost will increase; average fixed cost will be unaffected.
d. Marginal cost, average variable cost and average total cost will increase; average fixed cost will be unaffected.