You are an elementary-school principal and have a budget of $1m per annum. You can spend this on teachers, each with a total salary and benefit cost of $50,000 per year. Or you can spend it on Free School Meals for students at a cost of $500 per student per year. To help make your budgetary choices you draw out the budget constraint. What is the opportunity cost in terms of students receiving free school lunches for a year for one more teacher?

You are an elementary-school principal and have a budget of $1m per annum. You can spend this on teachers, each with a total salary and benefit cost of $50,000 per year. Or you can spend it on Free School Meals for students at a cost of $500 per student per year. To help make your budgetary choices you draw out the budget constraint. What is the opportunity cost in terms of students receiving free school lunches for a year for one more teacher?

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

Com 120.000 D 80.000 40.000 Robots 5.000 10.000 15.000 In the graph above, the resources in this economy are
John owns a computer repair shop and he owns the building where his shop is located. If he closed his business he could rent the building for $2,222 per month. Before he had the shop, he worked for a company and earned $4,067 per month. His utility bills are $511 per month and his labor costs are $1,165 per month. What is John's opportunity cost of running the business? Enter a whole number. ASUS f6 5
Give two factors that lead to the price of energy from new technologies to increase.
The table provides information about the production function for Lindsay's Farm, which uses labor and land to produce its produce. The price of labor is $50 per worker per week and the price of land is $20 per acre. Quantity of Land (acres) 10 10 10 Quantity of Labor (workers) 0 1 2 3 5 Quantity of Produce (bushels) 0 50 100 Table 55-4: Lindsay's Farm. 170 190 When Lindsay increases output from 50 units of produce to 100 units of produce, her marginal cost per unit is equal to:
Imagine a very talented young person who has just graduated from high school and has been offered a 4-year contract worth ten million dollars to play professional basketball for the LA Bakers, and has also received an offer of acceptance to UCLA with full fellowship. The fellowship covers her tuition, room, and board, along with a generous monthly stipend of 2500 dollars for living expenses for 4+1 years. Which of the following is true for this scenario? ( Remember: the cost of something is what you give up to get it!)A) The cost of the four years of college education for this person is very high, in the range of millions of dollars.B) The cost of the four-years of college education for this person is almost zero because of the generous fellowship and financial aid package she has received.C) The cost of the four years of college education for this is person is the sum of the tuition, room, and board expenses, plus the monthly stipend of 2500 dollars for 4 years.D) The rational choice…
A potential entrepreneur is tring to decide whether to open a new health spa. She currently makes P35, 000 per year as an aerobics instructor and will have to give up this job if she opens the new health spa. If she chooses to open the spa, it will cost her P200, 000 per year in rent and other operating expenses. What are her opportunity costs? Your answer
The technically efficient combination of two products a busniness can produce in the current period given its existing resources and technology is: (a) The production possibilities frontier (b) The marginal rate of production transformation (c) The least cost combination of two products (d) The marginal physical product
In the aftermath of a hurricane, an entrepreneur took a one-month leave of absence (without pay) from her $5,000 per month job in order to operate a kiosk that sold fresh drinking water. During the month she operated this venture the entrepreneur paid the government $2,500 in kiosk rent and purchased water from a local wholesaler at a price of $1.38 per gallon. If consumers were willing to pay $2.12 to purchase each gallon of fresh drinking water, how many units did she have to sell in order to turn an economic profit? Instruction: Enter your responses rounded up to the nearest gallon.
Suppose you are a producer and you need to identify what combination of labour and capital you should go with that you can make use of your resources to the optimal level; how will you identify your expansion path for production at minimum cost with the two factors of production explain your answer with the help of diagrams.
Macmillan Learning At your local family fun center, miniature golf is $12 per person for unlimited rounds in a day, while each go-kart session is $8. Given this information, calculate the cost of the following. Total cost of 0 rounds of golf: $ Total cost of 2 rounds of golf: $ Total cost of 0 go-kart sessions: $ Total cost of 2 go-kart sessions: $ 11 Total cost of 1 round of golf: $ Total cost of 3 rounds of golf: $ Total cost of 1 go-kart session: $ #00 Total cost of 3 go-kart sessions: $
Section B- SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. (3 points each) 1) Assume that an individual with an opportunity cost of time of $20 per hour has to choose between renting four apartments. The rents of the four apartments and the individual's monthly commuting time to work are shown in the following table. Calculate the direct cost, indirect cost, and total cost, that the individual will incur if she rents any of these apartments. Also, determine the apartment that is optimum for the individual. Monthly Commuting Time (hours) Apartment Rent ($) 1 60 2,800 2 90 2,200 1,500 1,400 3. 120 4. 150