Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $180,000. ATVs cost $6,000 each and snowmobiles cost $9,000 each. a. Draw the budget line for your purchase of new vehicles. Use the line drawing tool to draw a budget line. Properly label this line. Place end points one on horizontal and one on vertical axes. Carefully follow the instructions above, and only draw the required objects. b. What is the opportunity cost of one ATV? The opportunity cost of one ATV is 0.67 snowmobile(s). (Round your answer to two decimal places.) c. What is the opportunity cost of one snowmobile? The opportunity cost of one snowmobile is 1.5 ATV(s). (Round your answer to two decimal places.) d. Does the opportunity cost of one ATV depend on how many you purchase? Why or why not? depend on how many you for The opportunity cost of one ATV purchase because the opportunity cost of one good a straight-line boundary. Editing: ...

Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $180,000. ATVs cost $6,000 each and snowmobiles cost $9,000 each. a. Draw the budget line for your purchase of new vehicles. Use the line drawing tool to draw a budget line. Properly label this line. Place end points one on horizontal and one on vertical axes. Carefully follow the instructions above, and only draw the required objects. b. What is the opportunity cost of one ATV? The opportunity cost of one ATV is 0.67 snowmobile(s). (Round your answer to two decimal places.) c. What is the opportunity cost of one snowmobile? The opportunity cost of one snowmobile is 1.5 ATV(s). (Round your answer to two decimal places.) d. Does the opportunity cost of one ATV depend on how many you purchase? Why or why not? depend on how many you for The opportunity cost of one ATV purchase because the opportunity cost of one good a straight-line boundary. Editing: ...

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Draw the Budget Line (BL) for products A and B, where product A is on the horizontal axis. Show in the picture what will happen to your BL (BL1) if one of the following happens (always starting from BL1): a. If the price of A drops by half (BL2) b. If the price of B increases 100% (BL3) c. If the new income is twice the old one (BL4)
If corn cost $.55 per pound and protein supplement cost $.12 per pound what is the maximum amount of corn purchase with a $2200 budget?
Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVS) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $300,000. ATVS cost $6,000 each and snowmobiles cost $15,000 each. a. Draw the budget line for your purchase of new vehicles. Use the line drawing tool to draw a budget line. Properly label this line. Place end points one on horizontal and one on vertical axes. Carefully follow the instructions above, and only draw the required objects.
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Concert Tickets You are selling seats at an upcoming concert. The concert hall has a total of 8,500 seats, which will include reserved seats and general admission seats. You're selling reserved seats for $9 each and general admission seats for $5 each and are trying to decide how many of each kind of seat to offer. You want to make money on the concert, but also want people who can't afford the more expensive seats to come. You estimate your expenses for putting on the concert to be $50,000. You are hoping to make a profit, or at least break even. Assuming that you sell out the concert: a. Determine an equation for your revenue and profit as a function of the number of reserved seats you offer. b. Graph your revenue and profit equations on the same graph. What do you notice about the two functions? What does the slope of the lines represent in this situation? c. Determine how many reserved seats you would need to offer in order to break even. d. Determine how many reserved seats must…
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If you had a vacation budget of $3000 to take vacation(s) this fall, use utility analysis theory to predict which vacation that you would participate in this fall. You need to explain why you would take this vacation instead of another one that you were considering. Assume that you must take the vacation or all life on Earth would perish. I made that last assumption to prevent you from saying that you would just spend it to pay down bills or put it in savings. 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.