Which is a good example of an opportunity cost? 1. “To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. UPS was expensive at the moment for smaller or lightweight packages whereas USPS offered a cheap price for these types of packages. UPS ships more than 220 internationally while USPS ships to certain international destinations. I have chosen USPS over UPS, orders were delivered on time and without damage by the United States Postal Service. The opportunity cost is the cost of UPS shipping. “ 2. “To begin, I began selling prints of my pictures in 2019 throughout 2020. USPS and UPS were the options I had during W this period to ship out orders. I chose to ship my orders via UPS rather than USPS since it had the choice to ship orders internationally. While USPS is cheap and has fast shipping. Shipping the orders with UPS did not ship orders out on time, orders were damaged, and spending a large bulk of money getting these orders shipped out. The opportunity cost is the benefit of using USPS services. “

Which is a good example of an opportunity cost? 1. “To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. UPS was expensive at the moment for smaller or lightweight packages whereas USPS offered a cheap price for these types of packages. UPS ships more than 220 internationally while USPS ships to certain international destinations. I have chosen USPS over UPS, orders were delivered on time and without damage by the United States Postal Service. The opportunity cost is the cost of UPS shipping. “ 2. “To begin, I began selling prints of my pictures in 2019 throughout 2020. USPS and UPS were the options I had during W this period to ship out orders. I chose to ship my orders via UPS rather than USPS since it had the choice to ship orders internationally. While USPS is cheap and has fast shipping. Shipping the orders with UPS did not ship orders out on time, orders were damaged, and spending a large bulk of money getting these orders shipped out. The opportunity cost is the benefit of using USPS services. “

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What are nine components in the sales dialogue template that can be used for planning an organized sales dialogue or presentation
Note : Please answers all the parts , don't leave any part please it's a request. Donald is a small-scale orange juice producer, and he has a small orange juice producing factory in Mildura. He purchases oranges and other ingredients from shops in the local area. He sells all the produced juice bottles to the Mildura superstore for $7 per juice bottle; however, the superstore sells these bottles for the final consumer for $8.50. Donald spent $4200 last quarter and made 1000 juice bottles. (2 marks) a) What is the definition of value-added? (0.4 marks) b) What is Donald’s cost per bottle of juice? (0.4 marks), c) What is Donald’s value-added per bottle of juice? (0.4 marks) d) What is the total value-addition by Donald? (0.4 marks) e) What is the final contribution to the GDP from the orange juice according to the above information? (0.4 mark)
There is a road between the suburbs and downtown. The road becomes congested at rush hour. As long as no more than 99 people use the road at rush hour, the trip takes 30 minutes. When the 100st person enters the road, everyone slows down and the trip now takes 31 minutes. People value their time at $6 per hour (i.e., $0.10 per minute) and so a 30-minute trip costs $3. What is the total social cost of 100 people using the road?
The cost for one Lyft ride entails $1 in car upkeep, $1.50 in fuel, $2 in taxes and fees, and $7 in foregone salary. What is the economic profit if a driver is paid $12 for one ride? In Montana, the median earnings per trip for an Uber driver is $29.34, the average earnings/ trip for a Lyft driver is $28.62, and the average earnings/ trip for a taxi driver is $17.22. Optimal behavior assumed, what is the opportunity cost of the driver’s employment decision per ride? Assume the driver can only work for one company at a time.
Which of the following statements are true and which are false? Fill in the following table. The greatest potential for cost savings occurs in the operation phase of the life cycle. True Optimal volume (demand) occurs when total costs equal total revenues False The demand for necessities is more inelastic than the demand for luxuries A nonrefundable cash outlay (e.g., money spent on a passport) is an example of an opportunity cost. False Overhead costs normally include all costs that are not direct costs Most decisions are based on differences that are perceived to exist among alternatives.
Imagine that you own one of several popular restaurants in your area. Due to the Covid Pandemic of 2020, all restaurants were forced to close down for two months. You are now allowed to reopen your restaurant to the public. During this time, labor costs were reduced however, overhead such as rent, electricity, etc. was still a large percentage of your total costs. You are facing a dilemma; you are short on funds. What options should you consider? For example, should you raise menu prices to make up for the lost revenue? Should you lower menu prices to attract more customers? Is your customer volume elastic? If you raise prices and the customer volume falls will the increase in prices compensate for the loss of volume? If it does not, is there some way you can make up the revenue shortfall? If you lower menu prices and revenue falls is there some way you can increase your business revenue? Explain your reasoning in terms of demand and elasticity.
Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5/day. The company also rents spave where orders are prepared. Rent costs $50/day. To make the deliveries, the business also rents two delivery cars the cost $10/day. The costs of ingredients for preparing different numbers of meals are probided in the table below. Maria also has to hire between 0-10 workers to buy ingredients, prepare meals, and deliver the orders. She pays them $120/day. The first two columns of the table below shows how many meals different number of workers can prepare and deliver. Fill out the table
Assume quantities need not be integers. Demand in a competitive market is Qd(P)=120 – (4/10)*P. If 20 units are transacted, what is the lowest marginal benefit (i.e., MWTP) at which an item is purchased? Round to two decimal places and do not enter a currency symbol. If your answer is $1.125, enter 1.13.
A movie theater shows films for a community of 10000 people. Right now, the price per ticket is $17.50. In the past, when they increased or decreased the price per ticket, they discovered that for every dollar (or fraction) that the price was increased or decreased, the attendance decreased or increased proportionally by 200 people. The theater owner pays the Film Distribution Company $10 (incremental cost) in royalties per person whoviews the film. Find a. The willingness to pay distribution of the movie goers. b. The average price they would be willing to pay. c. The price per ticket that maximizes revenue. d. Should the theater owner increase or decrease the price per ticket if she wants to maximize contribution? e. Find the consumer surplus if the tickets are priced at the price that maximizes contribution. Please complete in excel showing formulas on how it was completed
The yearly demand for a widget is 5000 units. The cost of ordering is $100 per order and the cost of holding is $4 per unit per year. The widget was ordered in batches of 1000 units and the firm changes the policy to order as per the economic order quantity. What is the saving in total inventory related costs because of the change in the ordering policy? (Inventory related costs include holding and ordering costs)
Consider two pizza places in NYC, Bella Napoli and SuperPizza. The current pandemic and the City's policy response halved the local demand for pizza and raised cost of production. Currently, the daily total cost at Bella Napoli is TC =q² + 12q + 100 and the recurring FC is entirely sunk in the short run. At SuperPizza, the daily total cost is TC = q? + 4q + 100 and $64 of the recurring FC is sunk in the short run. On weekends, the price of pizza is $20 per pie. On weekdays, it's $15. Should Bella Napoli and/or SuperPizza stay open on weekdays or shuold they stay open on weekends only?
You and your friends love to go fishing. There is a sporting goods store in your neighborhood that sells a fishing pole for $82 but costs the store $60, and a fully stocked tackle box that sells for $58 but costs $40. Assuming the mark-up policy is linear, determine the equation that relates price (P) to cost (C). Following this same mark-up policy for other items, what would be the price of a pair of waders which cost the company $80?