Suppose rational decision-maker Carla decided togo to a concert and faced a choice: buy a ticket tosee Beth Patterson or buy a ticket to see RobinYukiko. She chose to purchase a ticket to see Robin.Suppose further that at the price of a ticket to seeBeth was $20 and the price of a ticket to see Robinwas $25. Carla's opportunity cost of seeing RobinwasSelect one:А.$5.В.$25.С.the expected pleasure of seeing Beth plus $25.D.$25 minus the expected pleasure of seeing Beth.Е.the expected pleasure of seeing Beth minus $25.F.the expected pleasure of seeing Beth plus $5.G.the expected pleasure of seeing Beth.Н.the expected pleasure of seeing Beth minus $5.I.$5 minus the expected pleasure of seeing Beth.

Given Price of a ticket to see Robin =$25 Price o ticket to see Beth =$20

Answered: Suppose rational decision-maker Carla…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 4PA

See similar textbooks

Similar questions

It takes Andy 45 minutes to complete a load of laundry and 15 minutes to wrap a present. It takes Bob 60 minutes to complete a load of laundry and 30 minutes to wrap a present. Which of the following statements is true? Select one : O A. Bob's opportunity cost of doing a load of laundry is wrapping 3 presents. O B. Bob has a comparative advantage in doing laundry. O C. Bob has a comparative advantage in wrapping a present. O D. Andy's opportunity cost of wrapping a present is doing 3 loads of laundry. O E. Bob has an absolute advantage in doing laundry.
He does not have any trade-offs in this situation. Instead of buying a ticket to a concert, you wait in line all night to get free tickets being given away at a local radio station. You: O do not bear an opportunity cost because the ticket was free. bear an opportunity cost, which is what you would have otherwise done with yo time. O bear an opportunity cost, which is the price you would have paid for the ticket. O do not bear an opportunity cost because all you gave up was some sleep. The purpose of a production possibilities graph is to *
=page Consider the following scenario to answer the next three questions. Ms. Franklin makes necklaces, with an opportunity cost of 2 jewelry boxes per every 3 necklaces. Ms. Lincoln makes jewelry boxes, with an opportunity cost of 4 necklaces per every 3 jewelry boxes. Ms. Green proposes that Ms. Franklin give Ms. Lincoln 1 necklace in exchange for 3 jewelry boxes. What are Ms. Franklin's and Ms. Lincoln's reactions? O a. Ms. Franklin likes the proposal, but Ms. Lincoln does not. O b. Ms. Lincoln likes the proposal, but Ms. Franklin does not. O c. Ms. Green's proposal is not feasible. O d. Neither Ms. Franklin nor Ms. Lincoln likes the proposal. Oe. Ms. Franklin and Ms. Lincoln both like the proposal. Next page
Only typed Answer
Person Judith Matthew Opportunity cost of 1 jar of baby food 6 hot pretzels 8 hot pretzels Opportunity cost of 1 hot pretzel 1/6 of a jar of baby food 1/8 of a jar of baby food Based on the table above, which of the following statements is true? Choose one: O A. Matthew has a comparative advantage in producing hot pretzels, while Judith has a comparative advantage in producing jars of baby food. ⒸB. Matthew has a comparative advantage in producing jars of baby food, while Judith has a comparative advantage in producing hot pretzels O C. Neither Judith nor Matthew has an absolute advantage in producing jars of baby food or hot pretzels. O D. Both Judith and Matthew have a comparative advantage in producing jars of baby food or hot pretzels.
Elif can produce 6 pies or 30 cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1hour A) What is the opportunity cost of producing cakes for Elif? What is the opportunitycost of producing cakes for Ahmet?B) Who has a comparative advantage in producing pies and who has a comparativeadvantage in producing cakes?C) On the PPF lines, show what Elif produces and what Ahmet produces when theyspecialize.D) Suppose that they set the exchange price as 1 Pie = 3 Cakes. If they specialize andtrade, show an exchange situation that is beneficial for both (compared to thesituation you found at part (b))?F) What is the minimum and maximum exchange price they could have determined foran exchange that will be beneficial for both of them?
The table below shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D? B) 10 cans of cola per chocolate bar C) 3 cans of cola per chocolate bar D) 1/3 can of cola per chocolate bar A) 30 cans of cola per chocolate ba
Suppose there are three people that can bake bread or making pies. The first is Merrick whose opportunity cost of making pies is 1/2 a loaf of bread. Egg's opportunity cost is 1 loaf of bread per pie. Robert's opporunity cost is 2 loaves of bread per pie. The daily joint PPF is depicted below: Loav es of Bread 27 • E 20 10 14 24 29 Pies Which point is unattainable? O a. E b.C c. D d.B e. A
1. PPF and CPF- Jane and Tarzan can produce food and luxury goods. Tarzan's production possibilities frontier (PPF) is defined by QTarzan + 6QȚarzan = 12 where QEarzan is the quantity of luxury goods and QFarzan is the quantity of food produced by Tarzan. Jane has 8 hours of work. Each hour of work yields 1 unit of food or 2 units of luxury goods. Here are three independent scenarios. a. Scenario 1: Suppose that Tarzan and Jane trade with each other (i.e., no outside merchants). Tarzan and Jane agree to trade goods under the following conditions: 1) the terms of trade are 1 unit of food in exchange for 3 units of luxury goods; and 2) each specializes according to his/her comparative advantage. Sketch on two different graphs (one for Tarzan and one for Jane) the individual PPFS, the individual CPFS, the individual points of production, and shade the areas corresponding to the gains from trade. Clearly label your graphs (i.e., indicate values for slopes, intercepts, endpoint(s). and…
You want to get a Halloween costume. You have a $20 gift card from Target, which expires today. You can either use the gift card to get a $20 costume from Target or you can make one by yourself. What is the opportunity cost of making a Halloween costume by yourself? O The value of the materials that used to make your own costume. O There is no opportunity since the card will be expired today. O None of these options is correct. O The value of a $20 costume from Target. O The value of the materials that used to make your own costume and the value of a $20 costume from Target.
Movies Onuber per yearn Moving to another question will save this response. Question 10 Refer to the accompanying figure. At point D, the opportunity cost of making milk is: Milk igallons per yeari O high because productive resources that are better-suited to making movies are not being used to make milk. high because productive resources that are better-suited to making movies are being used to make milk. low because the economy is specializing in making milk. high because the economy is not operating efficiently. Moving to another question will save this response.
i will 10 upvotes urgent

SEE MORE QUESTIONS

Recommended textbooks for you

Brief Principles of Macroeconomics (MindTap Cours…

Economics

ISBN:

9781337091985

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Brief Principles of Macroeconomics (MindTap Cours…

Economics

ISBN:

9781337091985

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS