John is trying to decide how to divide his time between his job as a stocker in the local grocery store,which pays $7/hr for as many hours as he chooses to work, and cleaning windows for the businessesin downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, andthe number of windows he can clean depends on how many hours he cleans a day, as shown in thetable below:Cleaning time(hr/day)Total numbers ofwindows cleaned0017234511141617What is John's per-window reservation price to justify the 4th and 5th hours of cleaning windows?A. $7 and $7.5 respectivelyB. $2 and $3.5 respectivelyC. $3.5 and $7 respectivelyD. $11 and $14 respectively

The correct option is B. $2 and $3.5 respectively. Explanation:John's per-window reservation price…

Answered: John is trying to decide how to divide…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 14 Assume the Backwoods Shoe Company hires three inputs: labor (L), capital (K), and land (A) to produce shoes (X). Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs? OMPLIPL MPK/PK = MPA/PA O MPL = MPK = MPA = 1/PX O MPL = MPK = MPA O PL = PK = PA
Mateo works eight hours per day. Today he has to decide whether to work overtime and stay one more hour in the office, or go back home and spend that hour studying for his economics exam. His company pays him $80 per day if he works eight hours, and $100 per day if he works nine hours. If Mateo studies one more hour, his exam score increases from 75 to 80, what is Mateo 's rational decision? Mateo decides to work overtime only if he values getting Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Last year, Jarod left a job that pays $60,000 to run his own bike repair shop. Jarod's shop charges $65 for a repair, and last year the shop performed 4,000 repalrs, Jarod's production costs for the year included rent, wages, and equipment. Jarod spent $50,000 on rent and $120,000 on wages for his employees. Jarod keeps whatever profit the shop earns but does not pay himself an official wage Jarod used $25,000 of his savings to buy a machine for the business. His savings were earning an annual interest rate of 6 percent. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers a. What is Jarod's annual accounting profit? $ 88500 O b-What is Jarod's annual economic profit? $ 28500O
You are looking for an apartment to rent. You know that searching for apartment to rent on the internet will help you find an apartment with a lower rental. The price you will pay with hours of internet search are given in the table below. If your hourly wage is $10, what is your optimal number of hours spent conducting internet search for apartment to rent?
Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires $6 comma 000 in seed, $ 9 comma 000 in fertilizer, and $10 comma 000 in pesticides. Mr. Jernigan uses his own labor to grow the corn and therefore hires no workers. If Mr. Jernigan did not use his time to grow corn, he would instead be able to sell insurance, earning $25 comma 000 per year. Part 2 Suppose another farmer has just offered to pay Mr. Jernigan rent of $10 comma 000 per year for use of the land. Part 3 If Mr. Jernigan refuses to rent the land to another farmer, then what will be his accounting costs from farming corn himself on his land? What will be his economic costs? Part 4 Mr. Jernigan's accounting costs will be $ enter your response here per year, and his economic costs will be $ enter your response here per year. (Enter numeric responses using integers.)
Dan spent $200 on a new computer monitor that he purchased from a local store. The local store had bought it from an area wholesaler for $150. The area wholesaler had bought it from the manufacturer for $85. The manufacturer bought raw materials that cost $10 to produce the monitor. For the raw‑materials provider, the $10 was pure profit. This monitor also had cost the manufacturer $65 in wages, the area wholesaler $20 in wages, and the local store $15 in wages.
Barney decides to quit his job as a corporate accountant, which pays $14,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $320 a month if he wasn’t using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $16,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s monthly explicit costs? $ b. What are Barney’s monthly implicit costs? $ c. What are Barney’s monthly economic costs? [i need a,b,c answer i will 5 upvotes]
Alice and Bob each produce haircuts and landscaping services. Alice can provide 4 haircuts in one hour. Bob can provide 2 haircuts in one hour. It takes Alice 2 hours to landscape an acre of property. It takes Bob 1 hour to landscape an acre of property. Assume Alice and Bob both work a standard 8 hour day. Which of the following must be true? check all that apply Landscaping an extra acre of property costs Alice 8 haircuts. Landscaping an extra acre of property costs Bob only 25% of the number of haircuts it would cost Alice to landscape the same acre. A haircut costs Bob 1/2 an acre of landscaped property. A haircut costs Alice 1/4 of an acre of landscaped property
John is deciding whether to go to college. He knows that if he goes, he will have to quit his $15,000 a year job. He needs to know what is the true cost of attending his first year of college. John's expenses of going to college of college tuition are: $10,000 ( $7000 tuition, $1000 for books, and $2000, for extra transportation costs.) John could have invested the $10,000 he spent on his tuition at a yearly interest rate is 10%. How would an economist would calculate the cost of of going to college for one year.
Weiwei gets a part-time job in high school that pays $5 per hour with flexible hours. Shechooses to work 6 hours per week, earning $30 per week. After a while, her job reduces herpay to $4 an hour. In response, she cuts back to working 5 hours per week, earning only$20 per week. Weiwei’s parents feel bad about the pay cut, and decide to give her a weeklyallowance, in cash, to make up for it. If they want to get her back to her old utility level,how much should they give her and why? (Select one answer from below) : (a) $10: that is her total amount of lost earnings(b) Between $10 and $6: that is the income effect minus the substitution effect(c) Between $10 and $6: leisure is a luxury good for high school students(d) $6: that is how much she would have lost if she kept working 6 hours(e) $5: the substitution effect offsets the change in labor hours(f) Between $6 and $0: she will substitute away from labor at the old bundle(g) Between $5 and $0: a pay cut is like a negative in-kind…
Dina is working for a consulting firm making $60,000 per year but considers starting her own consulting company. Dina has determined that to launch the business, she needs to invest $100,000 of her own funds. The annual cost of running the business will include $70,000 for the rent of the office space, $210,000 for employee wages, and $5,000 for materials and utilities. Dina plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 6%. Dina's total implicit cost per year is . Dina's total cost per year is .
Eduardo, a teacher, earned $40,000 as his annual salary from his employer in 2018. But in 2019 he decided to quit that job and start his own business: manufacturing skateboards. Here's what he did to accomplish it: Stopped renting out his grandparents' cottage (for $8,000 a year) and used it as his factory instead. .He spent $60,000 on materials and utility bills. He got that money from his savings account, which was earning 5% annual interest. • He leased machines for $10,000 a year and paid $15,000 in wages. He sold $135,000 worth of skateboards. Eduardo's accounting profit is but his economic profit is O160,000; 85,000 141,000; 160,000 O-1000; 50,000 50,000; -1000

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