Owen is looking to sell his guitar for nothing less than $60. Suppose Shannon offers him$100, although she was willing to pay up to $130 for it. How much total value is created ifOwen accepts this trade?O Total value created is $70Total value created is $40Total value created is $160O Total value created is $30O Total value created is $230

The minimum selling price of Owen is $60, which is the least amount of money Owen is willing to…

Answered: Owen is looking to sell his guitar for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Tell me why each point deserves to be where it is
Which of the following statements is consistent with how changes in opportunity cost are expected to affect behavior? O a. The lower the opportunity cost of doing X, the more likely X will be done. b. The higher the opportunity cost of doing X, the more likely X will be done. O c. There is no relationship between opportunity cost and behavior. d. The lower the opportunity cost of doing X, the less likely X will be done.
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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…
According to the MRS, what's the maximum number of sleeping hours Katy would be willing to give up to visit one more party, if she currently visits 2 parties and sleep 8 hours per day? O 1/4 O 1/2 O 2 4
Which of the following describes the difference between "scarcity" and "shortage"? O There is no difference; either word can be used to describe the situation that exists when there is less of a good or service available than people want. O In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price. O There is a shortage of almost everything. Scarcity occurs only if the quantity demanded of a good or service is greater than the quantity supplied at the current market price. O In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the equilibrium price.
QUESTION 19 Exhibit: Production Possibilities in Alphaland and Omegaland Computers (thousands per year) 2947654321 10 (Exhibit: for O a. 1; 2 Ob. 2; 1 O c. 1; 1/5 O d. 1/5; 1 Panel (A) Alphaland (Slope of PPC at A = -2) Cars (thousands per year) Computers (thousands per year) 10 9 8 Panel (B) Omegaland (Slope of PPC at A' = -0.2) A' Cars (thousands per year) 11 Production Possibilities in Alphaland and Omegaland) Before trade in Omegaland, computer. car could exchange
A human has the choice to spend 11 hours working or learning. If they spend an hour working, they earn $11. If they spend an hour learning, then they can expect to progress through 3 course concepts. What is their opportunity cost if they change from working 9 hours and learning 2 hours, to working 11 hours and learning 0 hours? they gain $5, and forgo learning 4 course concepts Othey forgo $5, and learns another 7 course concepts Othey gain $14, and forgo learning 7 course concepts O they gain $22, and forgo learning 6 course concepts
Suppose you are considering whether to spend an additional hour studying for your economics midterm tomorrow. If you do not study you can either surf the web, which you value at $5, or you can talk to your roommate, which you value at $4. Your opportunity cost of studying for an additional hour is: O $4 O $9 O $5 O $1
Sulan oil. 2. Suppose that Happy Land produces only two goods-food and suntan oil. Its production possibilities are: Food (pounds per month) 300 200 100 0 Active Land also produces only food and suntan oil, and its production possibilities are: Draw the two PPFs 300 250 200 150 LOO Food (pounds per month) 150 100 50 0 50 100 200 Food 300 Sutan o.1 300 250 200- 150. loo 50 Suntan oil (gallons per month) 0 50 100 150 Suntan oil (gallons per month) 0 100 200 300 100 Active land's PPF 200 1,00 Food a. What are the opportunity costs of food and suntan oil in Happy Land? b. Why are the opportunity costs the same at each output level? c. What are the opportunity costs of food and suntan oil in Active Land? I pound of food is ons gations upoil 2 gallons of ot d. If each nation specialized where they have a comparative advantage, and then traded, find the acceptable ranges for trade. 1 pound of food would have to trade between which values of suntan oil? 1 pound of suntan oil would have to…
Suppose the graph below shows Gilligan's daily production possibilities curve for coconuts and fish. Which points on the graph are efficient? Coconuts (lbs/day) 8 7 6 0 0 O Multiple Choice O O O 1 2 3 4 5 Point A A Fish (lbs/day) Point B C Point C B Both points A and B 6
16. How prices allocate resources Suppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $595,000. The following table states each person's willingness and ability to purchase a parcel. Willingness and Ability to Purchase (Dollars) Person Ana 530,000 Kevin 750,000 Maria 660,000 Rajiv 620,000 Simone 570,000 Yakov 540,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. O Ana O Kevin O Maria O Rajiv O Simone O Yakov Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $582,500. This fourth parcel - be sold, because will purchase it from the…

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