3. Evaluating opportunity costs Janet and Felix need to decide which one of them will take time off from work to complete the rather urgent task of changing the brakes on their car, Janet is pretty good at car repairs; she can change the brakes in 30 minutes. Pelix is somewhat slow; it takes him 5 hours to change the brakes. Janet earns $160 per hour as a psychlatrist, while Fellx earns $20 per hour as a cobbler. Keeping in mind that either Janet or Felix must take time off from work to change the brakes, who has the lowest opportunity cost of completing the task? O Janet and Felix face equal opportunity costs O Felx O Janet

3. Evaluating opportunity costs Janet and Felix need to decide which one of them will take time off from work to complete the rather urgent task of changing the brakes on their car, Janet is pretty good at car repairs; she can change the brakes in 30 minutes. Pelix is somewhat slow; it takes him 5 hours to change the brakes. Janet earns $160 per hour as a psychlatrist, while Fellx earns $20 per hour as a cobbler. Keeping in mind that either Janet or Felix must take time off from work to change the brakes, who has the lowest opportunity cost of completing the task? O Janet and Felix face equal opportunity costs O Felx O Janet

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter1: What Economics Is About

Section: Chapter Questions

Problem 7QP

See similar textbooks

Similar questions

3. Determining opportunity cost Suppose that Ciana is deciding whether or not to buy a pair of sandals that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sandals she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $112 for the sandals: Store Local Shoe Store Different Neighborhood in Town Rural Outlet Travel Time Each Way (Minutes) 15 30 60 Marked-up price Juanita's office Price of a Sandals (Dollars per sandals) 112 98 86 Discounted price Original price
2. Determining opportunity cost Suppose that Ciana is deciding whether or not to buy a pair of sneakers that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sneakers she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $112 for the sneakers: Ciana earns an hourly wage of $42 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her $42 in lost income. Assume that Ciana’s travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Ciana incurs no additional costs other than the sneakers, such as gas. Complete the following table by computing the opportunity cost of…
Not a previously graded question. Becky is a talented artist who sells hand-crafted goods on her website. Becky currently crafts and sells both picture frames and pillows. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good.
2. Determining opportunity cost Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $104 for the suit: Store Travel Time Each Way Price of a Suit (Minutes) (Dollars per suit) Local Department Store 15 104 Across Town 30 87 Neighboring City 60 80 Juanita makes $36 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $36 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the…
Problem 3 (a) Suppose that when Jane is presented with the following two menus, her choices from them are as below 2 • When presented with the menu {6 units of apples, 5 units of bananas}, Jane chooses 6 units of apples. • When presented with the menu {7 units of oranges, 5 units of bananas}, Jane chooses 5 units of bananas. Suppose that Jane is then presented with the menu {7 units of oranges, 6 units of apples} What must Jane's choice be from this menu so that her behavior conforms to the axioms of rational choice? Explain. (b) Suppose that Frederick choices from the following menus are as follows • For any e > 0³, out of the menu {(4 + ɛ apples and 3 bananas), (5 oranges and 3 bananas)}, Frederick chooses (4 + ε apples and 3 bananas). • Out of the menu {(4 apples and 3 bananas), (5 oranges and 3 bananas)}, Fred- erick chooses (5 oranges and 3 bananas) What axiom of rational choice does Frederick's behavior evidently violate? Discuss.
Lashed is a college student and lives off a budget of $100/week. She spends all of it on Chipotle meals and/or Starbucks. Her Chipotle meal costs her $10 and her Starbucks bucks drink costs her $6. Calculate the opportunity costs of one of her Starbucks drinks in terms of Chipotle meals. Write your answer as a whole number or using decimals. For instance, 2, 3, 0.4, 0.8, 1.5, etc.
9. Sunk costs and decision making Kate has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Carl, whom Kate has wanted to date for a long time, asks her to a concert. Kate would prefer to go to the concert with Carl and forgo the movie, but she doesn't want to waste the $10 she spent on the movie ticket. From the perspective of an economist, if Kate decides to go to the concert with Carl, what has she just done? O Correctly ignored a sunk cost O Made a choice that was not optimal O Incorrectly allowed a sunk cost to influence her decision
3. Sunk costs and decision making Charles has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Dina, whom Charles has wanted to date for a long time, asks him to a party. Charles would prefer to go to the party with Dina and forgo the play, but he doesn't want to waste the $50 he spent on the play ticket. From the perspective of an economist, if Charles decides to go to the party with Dina, what has he just done? O Correctly ignored a sunk cost O Made a choice that was not optimal O Incorrectly allowed a sunk cost to influence his decision
2. Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, Discounted price located 15 minutes away from where she works, and pay a Marked-up price marked-up price of $112 for the dress: Juanita's office Original price
Vasya can photocopy 10 pages from a book or type 2 pages of handwritten text in 10 minutes. Petya can photocopy 40 pages from a book or type 3 pages of handwritten text in 10 minutes. Suppose also that both tasks are equally enjoyable to both of them. Given the information, if Vasya takes a course and learns how to type 3 pages in 10 minutes and can still photocopy 10 pages in 10 minutes, then: Petya will photocopy 5 pages and type 1 page, and Vasya will photocopy 20 pages and type 2 pages. Vasya will photocopy 5 pages and type 1 page, and Petya will photocopy 20 pages and type 2 pages. (c) They will not know what to do since not enough information is provided. (D) Petya will do all the typing and Vasya will do all of the photocopying. (E) Petya will do all the photocopying and Vasya will do all the typing.
2. Determining opportunity cost Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, Discounted price located 15 minutes away from where she works, and pay a Marked-up price marked-up price of $122 for the skirt: Juanita's office Original price Travel Time Each Way Price of a Skirt Store (Minutes) (Dollars per skirt) Local Department Store 15 122 Across Town 30 90 Neighboring City 60 78 Juanita makes $60 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $60 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by…
2. Determining opportunity cost Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 Discounted minutes away from where she works, and pay a marked-up Marked-up price price price of $102 for the suit: Juanita's office Original price Travel Time Each Way Price of a Suit (Minutes) (Dollars per suit) Store Local Department Store 15 102 Across Town 30 88 Neighboring City 60 63 Juanita makes $18 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $18 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing…