Nn2 Tommy is a crystal miner where he travels to various places to dig and find crystals for his collection. Currently, Tommy found a total of 200 crystalsof at least 30 different kinds all over the United States.1. Scarcity principle applies in this scenario.2. Crystals are considered a scarce resource.3. This is only considered an economic situation if Tommy sells the crystals rather than collecting them for himself.Which of the above statements are true?Only 1 is true.Only 2 is true.Both 1 and 2 are true.Both 1 and 3 are true.O All three are true.Don is a skilled sculptor who carves old blocks of wood into a range of animal shapes. It costs Don $20 to produce the first sculpture and $10 foreach subsequent sculpture. Don can sell 6 sculptures for $165 and 7 sculptures for $185.Which of the following statements are true:The average cost for producing 8 sculptures is $10 per sculpture.The marginal cost of producing the seventh sculpture is $10.Don should produce the seventh sculpture because the marginal revenue is greater than the marginal cost.The marginal benefit of the seventh sculpture is $30.

For multiple questions, we can provide the solution only for one question as per our Q&A…

Don is a skilled sculptor who carves old blocks of wood into a range of animal shapes. It costs Don $20 to produce the first sculpture and $10 for each subsequent sculpture. Don can sell 6 sculptures for $165 and 7 sculptures for $185. Which of the following statements are true: The average cost for producing 8 sculptures is $10 per sculpture. The marginal cost of producing the seventh sculpture is $10. Don should produce the seventh sculpture because the marginal revenue is greater than the marginal cost. The marginal benefit of the seventh sculpture is $30.

Don is a skilled sculptor who carves old blocks of wood into a range of animal shapes. It costs Don $20 to produce the first sculpture and $10 for each subsequent sculpture. Don can sell 6 sculptures for $165 and 7 sculptures for $185. Which of the following statements are true: The average cost for producing 8 sculptures is $10 per sculpture. The marginal cost of producing the seventh sculpture is $10. Don should produce the seventh sculpture because the marginal revenue is greater than the marginal cost. The marginal benefit of the seventh sculpture is $30.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter18: Public Economy

Section: Chapter Questions

Problem 6SCQ: Anastasia, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first,...

See similar textbooks

Similar questions

Anastasia, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first, second, and third choice and then vote on the options. Table 18.2 shows their first, second, and third choice preferences. Explain why they will have a hard time teaching a decision. Does the group prefer mountain biking to canoeing? What about canoeing compared to the beach? What about the beach compared to the original choice of mountain biking?
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
Sue Tom Good A 10 4 Select one: Good B 15 5 As shown in the table above, Sue and Tom each can produce two different types of goods. For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If she only produces Good B, then she can produce 15 units of Good B per day. For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she only produces Good B, then she can produce 5 units of Good B per day. Which of the following statement is correct about comparative advantage? O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a comparative advantage over Tom in the production of Good B O b. Tom has a comparative advantage over Sue in both tasks O c. Sue has a comparative advantage over Tom in both tasks O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a comparative advantage over Sue in the production of Good B
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 Travel Time Each Way Price of a Dress (Minutes) (Dollars per dress) Store Local Department Store 15 112 Across Town 30 89 Neighboring City 60 70 Juanita makes $26 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $26 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…
1. Kim owns a Porsche and a Toyota. The Porsche has a fuel economy of 15 miles per gallon (mpg) and she plans to drive it 3,000 miles this year. The Toyota gets 30 miles per gallon and she plans to drive it 15,000 miles this year. Suppose Kim can install a device that improves the fuel economy of any vehicle by 5 miles per gallon. However, she only has one of the devices. Which vehicle should she install it on if her goal is to minimize fuel consumption this year? Assume that the device does not hamper vehicle performance in any way.
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…
2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces only two goods- wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity costof cheese production in Happyland as the country increases its cheese production? (increase, decrease, unchanged or indeterminate?) Explain how you can tell this from the PPFand why it happens. c) Briefly describe two specific policies the government of Happyland could undertake to shift out their PPF in future periods. (By specific policies, I mean something they can actually do to change productivity for either or both of these goods. "Increase resources," for example, is not a specific policy. What resources and what type of policy could increase the resources used for either of these products?)
1. Describe economics as the study of "choice" and "scarcity".
2. Which words best complete the following sentence ? A rational decision maker always chooses the option for which marginal benefit is _______ marginal cost?
10. Because of scarcity, for every choice we make, there will always be opportunity costs. What does this statement mean? a. Scarcity helps us save our resources by reducing opportunity costs and encouraging higher consumption b. We will always have to sacrifice the enjoyment of something or benefiting from our other options due to limitations in resources. c. none of the choices are correct d. We can fully enjoy both of our choices as long as we take the opportunity and continuously consume our limited resources
4-Identify the scarcity definition of economics from the following. a. the choices we make because of shortage of resources. b. the distribution of surplus goods to those in need. c. None of these d. ways to reduce wants to remove the problem of scarcity.
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