MCQ4. Alex has three hours in which he can do his homework, or he can go to the gym (which will cost him $14);or he can watch a movie (which will cost $8); or he can go out to coffee with a friend (which will cost $6). Theopportunity cost of doing his homework is:а.The missed gym session.b. The missed gym session and missed movie.C.The missed gym session, missed movie and coffee with a friend.d.Nothing, he's saving money by doing his homework.е.None of the above.

Opportunity cost represents the potential benefits that one has to give up while choosing an…

CQ4. Alex has three hours in which he can do his homework, or he can go to the gym (which will cost him $14); he can watch a movie (which will cost $8); or he can go out to coffee with a friend (which will cost $6). The portunity cost of doing his homework is: а. The missed gym session. b. The missed gym session and missed movie. The missed gym session, missed movie and coffee with a friend. Nothing, he's saving money by doing his homework. с. d. е. None of the above.

CQ4. Alex has three hours in which he can do his homework, or he can go to the gym (which will cost him $14); he can watch a movie (which will cost $8); or he can go out to coffee with a friend (which will cost $6). The portunity cost of doing his homework is: а. The missed gym session. b. The missed gym session and missed movie. The missed gym session, missed movie and coffee with a friend. Nothing, he's saving money by doing his homework. с. d. е. None of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Potatoes cost Janice .50 per pound, and she has $5 that she can spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third is worth $1.05, and all subsequent pounds are worth .30 per pound. How many pounds of potatoes will she purchase? How many pounds would she purchase if she only had $2 to spend?
None
Sven runs a daycare for some of the neighborhood children, where he earns $300/day inrevenue. He runs the daycare out of his home, for which the mortgage costs $3,000 per month($100 per day). Each day, Sven spends $50 on food, diapers, and other supplies. He also hassome toys and playground equipment that originally cost $500, but which he wouldn’t getany money for reselling today. Sven looks after all the children himself, so he doesn’t pay anymoney in labor costs. If he weren’t busy with the daycare, he could earn $120 per day as aprivate nanny. What is Sven’s daily economic profit from the daycare? (Select one from below) (a) $300: Economic profit is equal to revenue.(b) $180: That is his revenue minus opportunity cost.(c) $150: That is his revenue minus input cost.(d) $130: That is his revenue minus variable cost.(e) $50: That is his revenue minus accounting cost.(f) $30: That is his revenue minus economic cost.(g) $0: In the long run, all firms must make zero profits.(h) –$200:…
Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56 given by his dad to spend on his collection. The store sells them at $14 per pokemon cards and $7 for the stickers. 1. If Ethan spends all his money on pokemon cards, what is the maximum unit that he can purchase based on the given budget? 2. If Ethan spends all his money on stickers, what is the maximum unit that he can purchase based on the given budget? 3. Show in an illustration where pokemon cards is in the x-axis and y-axis is the sticker.
only part 3 question C and D
Number of Units of Commodity 5 6 7 D. 116 8 25. Refer to the above table. What is the marginal utility of the fourth unit? A. 36 B. 44 C. 80 Total Utility 36 80 150 252 350 440 26. Refer to the above table. The addition of which unit has the greatest marginal utility? A. Fifth B. Sixth C. Seventh D. Eighth 27. Refer to the above table. At what consumption level for this product does diminishing marginal utility set im A. 4 units 8.5 units C. 6 units D. 7 units
PROBLEM (4) Zoey has $3 budget in total and can spend her money on cookies (x) and bananas (y).She has preferences over cookies and bananas represented by u(x,y) = x?y. The first 5 cookies are free for Zoey, but each additional cookie costs $1. Bananas are always $1 each. (a) Draw her feasible budget set, identifying all the intercepts, kinks, etc... (b) What is her optimal bundle? (c) What is her optimal bundle if she only had a $2 budget? (d) Suppose she has $2 budget, but now not only the first 5 cookies are free, but also the first 3 bananas (additional cookies or bananas are $1 each as before). Draw her budget set and calculate her optimal bundle.
You have $40 each week to spend on sporting activities (tennis and golf). A tennis match costs $4 and a game of golf costs $2. A match of tennis lasts one hour and a game of golf lasts 3 hours. Each week you have only 15 hours of leisure allocated for sports. 3. Draw your budget line/curve in a diagram measuring matches of tennis on the horizontal axis.
6. For your birthday, you receive a hamper from your friend, which contains food and drink. They have chosen to buy you 8 packs of hot chocolate and 10 packs of luxury biscuits. Unfortunately, the hot chocolate is not milk chocolate and the biscuits are chocolate chip and not your favourite ginger biscuits! They haven't provided the receipt, but you return to the shop where the hamper was bought and ask to exchange the items. Each pack of hot chocolate was priced at £5 and each pack of biscuits was priced at £6. You face a utility function of U (Hċ, B) = H²B. When you return to the shop, you see that all of the biscuits are now half price, but all of the types of hot chocolate haven't changed in price. You are able to exchange your biscuits and hot chocolate, but can only receive a refund based on the current marked price of the products in the shop. Given this information and assuming hot chocolate is on the horizontal axis and your aim to maximise utility, what should you do? (a) You…
a) The s utility function is given as follows: U(z,y) = x+y The budget-constrained of 8 in spending money on the watching cricket match and movies as follows: 845x + 36y= 324 Now the utility function for finding the optimal bundle of preferences The bundle of a and y is under budget Now the Bundle of (x, y) is (2, 2) 45(2) 36(1) 45x + 36y= 324 36(2) 324 324 162 < 324 The MRS is one means to get an additional unit of zone unit of y will sacrifice and to get one additional unit of y, one unit of z will sacrifice. The budget line explain if (x, y) is (1, 1) 45(1) then = 324 $81 < 324 Now the Bundle of (x, y) is (3, 3) 90+72 Now the Bundle of (x, y) is (4,4) 45x+36y 324 45(3) 36(3) 324 135+108 324 243 < 324 = U(x, y) = x+y dU 45x + 36y= 324 45(4) 36(4) 324 180+144 324 324 324 = 1 dz MU2=1 du dy MUy=1 MRS MUT Pz MUY Py MRS=1 =1 MU MUy So the optimal bundle for S is 4 unit of z and 4 unit of y that is (4,4).
Don't use Ai
Chapters 2 1. Suppose Alphonso's town raises the price of bus tickets from $1 to $2 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso's weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain and sketch the difference graphs.