HatsUmbrellasMinnie4010Mickey50LO5Table 2-8 shows the output per week of two people,Minnie and Mickey. They can either devote theirtime to making hats or making umbrellas.Refer to Table 2-8. What is Mickey's opportunity cost Minnie and Mickey. They can either devote theirtime to making hats or making umbrellas.Refer to Table 2-8. What is Mickey's opportunity costof making an umbrella?A) 1/5 of a hatB5 hatsC) 10 hatsD) 50 hats

Opportunity cost is the benefit that is lost when a different option is chosen. You must balance the…

Answered: Refer to Table 2-8. What is Mickey's…

Refer to Table 2-8. What is Mickey's opportunity cost of making an umbrella? A) 1/5 of a hat B 5 hats C) 10 hats D) 50 hats

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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) Suppose there are two goods, X and Y. The price of good X is $5, the price of good Y is $3, and your income is $60. Neatly graph your budget line and label the intercepts. (a) What is the slope of your budget line? (b) How many units of good Y do you give up per unit of good X? (c) Suppose the price of good X rises to $6, show what happens to the budget line and label any new intercepts. (d) What is the new slope of the budget line? How many units of good Y do you now give up per unit of good X? (e) Suppose the price of good X only rises to $6 once you have purchased six units of good X. In other words, it is $5 per unit for the first six units and $6 per unit thereafter. Make a new graph of this "kinked" budget constraint.
PROBLEM (1) Suppose a consumer has just enough money to afford the bundle of 3 apples and 2 oranges, and similarly she also has just enough money to afford the bundle of 2 apples and 4 oranges. (a) Denoting the number of apples with x and oranges with y, plot the two given bundles on a graph, and calculate the relative price of apples; px/ py. (b) If she buys only apples with her budget, how many can she buy? If she buys only oranges, how many can she buy? Write down the budget equation for the consumer. (Notice that knowing two points on the budget line, you can write down the budget equation, even though you weren't given the prices nor the income explicitly!) (c) Suppose MUx = 20 and MUY = 30 at some point on the budget line. Is she maximizing utility by choosing this bundle? If not, should she buy fewer apples (and more oranges), or more apples (and fewer oranges), to increase her utility? (d) Forget about (c); instead, you learn that her utility function is u(x,y) = Axy³. What is…
1 explain the role of ceteris paribus in economic analysis
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…
Lucinda collects Kewpie dolls, and can afford to buy up to six dolls. The table below describes the marginal benefit Lucinda gets for each additional doll she adds to her collection. Lucinda's Marginal Benefit of Kewpie Dolls Marginal Benefit (dollars) $15 14 13 12 11 10 Kewpie Dolls 1 2 3 4 5 6 4 Instructions: Enter your answers as a whole number. a. If the price of Kewpie dolls is $11 per doll, how many dolls would Lucinda buy if she is rational? 4 doll(s) b. If the price of Kewpie dolls rose to $12 per doll, how many dolls would Lucinda buy if she is rational? 3 doll(s)
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Stan Moneymaker needs 15 gallons of gasoline to top off his automobile’s gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.90 per gallon and Stan’s car gets 25 mpg for in-town driving. Should Stan make the trip to get less expensive gasoline? Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on the environment. What other factors (cost and otherwise) should Stan consider in his decision making?
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QUESTION 23 Quantity Per Week 0 1234 00 0 5 6 7 8 9 Amy 0 5.0 9.9 14.7 194 24.0 28.5 329 37.2 414 Total Utility David 0 600 1200 1800 2400 3000 3600 4200 4800 5400 Robert 0 100 190 270 340 400 450 490 520 510 Michelle 0 60 130 220 310 425 575 900 1275 1770 Refer to the above table. Which of the four people have utility schedules characterized by the law of diminishing marginal utility? O Michelle and David only O Amy and Robert only Michelle only Amy, Robert, and David only
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13_Economics