CONNECT F/MICROECONOMICS
21st Edition
ISBN: 2810022151240
Author: McConnell
Publisher: MCG
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Question
Chapter 1, Problem 4RQ
To determine
The opportunity cost of buying a stapler.
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Students have asked these similar questions
3. Suppose you won $15 on a lotto ticket at the local 7-Eleven
and decided to spend all the winnings on candy bars and
bags of peanuts. Candy bars cost $0.75 each while bags of
peanuts cost $1.50 each. LO1.5
a. Construct a table showing the alternative combinations
of the two products that are available.
b. Plot the data in your table as a budget line in a graph.
What is the slope of the budget line? What is the oppor-
tunity cost of one more candy bar? Of one more bag of
Q.3 (a)
No of Units Consumed
1
2
4
6.
Total Utility in Units/Utils
10
25
40
60
75
80
Marginal Utility in Units/Utils
15
20
15
(i)
State and explain the law illustrated in the above table.
(ii)
Outline two assumptions underlying this law.
lo
3.
Assume that Robyn wants to buy socks and once she finds out that the price per pair is $5. she decides to buy 4 pairs of socks. Which of the following is true?
O a) The marginal benefit (or marginal utility) of the 5th pair is higher than the marginal cost of the Sth pair
O b) The marginal benefit (or marginal utility) of the 4th pair must be equal to $20
O O The marginal benefit (or marginal utility) of the Sth pair must be lower than $5
O d) The marginal benefit (or marginal utility) of the first pair must be lower than 55
Chapter 1 Solutions
CONNECT F/MICROECONOMICS
Ch. 1.2 - Prob. 1QQCh. 1.2 - Prob. 2QQCh. 1.2 - Prob. 3QQCh. 1.2 - Prob. 4QQCh. 1.A - Prob. 1ADQCh. 1.A - Prob. 2ADQCh. 1.A - Prob. 3ADQCh. 1.A - Prob. 1ARQCh. 1.A - Prob. 2ARQCh. 1.A - Prob. 1AP
Ch. 1.A - Prob. 2APCh. 1.A - Prob. 3APCh. 1.A - Prob. 4APCh. 1.A - Prob. 5APCh. 1.A - Prob. 6APCh. 1.A - Prob. 7APCh. 1.A - Prob. 8APCh. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8P
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- Caci, un he would spend a dollar buying a first cup of coffee? LO7.2 4. Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are, respectively, $18, $6, $4, and $24 and that Ricardo has an income of $106. LO7.2 a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? b. How many dollars will Ricardo choose to save? c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule. nuts, coffee, or both. How big would that buuget nave LU DC DCIUIUarrow_forward14..arrow_forwardOwen is looking to sell his guitar for nothing less than $60. Suppose Shannon offers him $100, although she was willing to pay up to $130 for it. How much total value is created if Owen accepts this trade? O Total value created is $70 Total value created is $40 Total value created is $160 O Total value created is $30 O Total value created is $230arrow_forward
- ents Question 5 If your tuition is $2,000 this semester, your books cost $400, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $12 per hour, and your room and board is $4,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is O $2,760. O $7,800. O $11,800. $2.100arrow_forwardRefer to the above diagram for athletic shoes. Marginal Cost Marginal Benefit Quantity of shoes If the current output of shoes is Q3, then: society would consider additional units of shoes to be less valuable than O 1) alternative products. 2) resources are being allocated efficiently to the production of shoes. society would consider additional units of shoes to be more valuable than O 3) alternative products. 4) society would experience a net gain by producing more shoes. Marginal benefit and marginal cost (dollars)arrow_forwardLouis is trying to decide what combination of cups and plates to buy. His budget is $12. Plates cost $4 each and cups cost $2 each. The numbers in the table represent total utility. Given his budget, which combination will maximize total utility? number of plates and cups.arrow_forward
- 2arrow_forward1. Improvements in technology. 2. Increases in the supply (stock) of capital goods 3. Purchases of expanding output. 4. Obtaining the optimal combination of goods, each at least-cost production. 5. Increases in the quantity and quality of natural resources. 6. Increases in the quantity and quality of human resources. Multiple Choice Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve? O 12.5, and 6 only Help 3 and 4 only Save & Exitarrow_forwardA farmer produces both beans and corn on her farm. If she must give up 16 bushels of corn to be able to get 4 bushels of beans, then her opportunity cost of 1 bushel of beans is 0.25 bushels of corn. 16.00 bushels of corn. 4 bushels of corn. O 2.99 bushels of corn.arrow_forward
- Solve it now I upvotearrow_forwardDanièle has 40 hours a week she can use for work or leisure. She earns 16 euros an hour and has no other income. Her utility function is U(c,I) = c'l , where is consumption in dollars and is leisure in hours. How many hours a week will Danièle work? O 10 O None of the other answers is correct O 15 O 30 O 20arrow_forwardUsing the following table with the resources and their cost per unit, which production choice would a business decide to use? $100 $30 $20 Cost per unit Capital Labor Land Production 2 1 2 choice 1 Production 1 5 2 choice 2 Production 2 4 3 choice 3 Production choice 2 Production choice 3 Production choice 1 LOarrow_forward
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