Suppose that without a seat belt, drivers who travel at 0 mph have a 100% chance of staying alive, while drivers who travel at 100 mph have 0% chance of staying alive. suppose that with a seat belt, drivers who travel at 0 mph have a 100% chance of staying alive, drivers who travel at 100 mph have a 50% chance of staying alive, and drivers who travel at 200 mph have a 0% chance of staying alive. suppose a driver prefers more chances of staying alive to less, driving faster than slower. draw and indifference curve diagram relating safety (measured by chance of staying alive) on the horizontal axis and speed (measured in m. p.h.) on the vertical. draw the budget constraints of a driver with a seat belt and a driver without a seat belt. (you may assume these constraints are straight lines.)

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer