If the thought of finishing an expensive meal even if the appetite is full is right or not. Concept Introduction: Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

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Answer 1

Question

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

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Home can produce a maximum of 400 apples or a maximum of 600 bananas.Foreign can produce a maximum of 160 apples or a maximum of 800 bananas.(a) Graph and label Homes PPF. Label each axis and the slope. Use numbers.1(b) In the absence of trade, what is Homes autarky price of apples in terms of bananas?(c) Graph and label Foreigns production possibility frontier. Use numbers and label the slope.(d) Graph the world relative supply curve. Use numbers.23. (8 pts - RM) Now suppose world relative demand for apples takes the following form:Demand for apples/demand for bananas - price of bananas/price of apples. That is, RDA = Pbananas Papples(a) Graph the relative demand and relative supply curves on the world market diagram. Use numbers(b) What is the equilibrium (world) relative price of apples? (c) Show that both Home and Foreign gain from Trade and describe the pattern of trade.

Answer 2

Question

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

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Answer 3

Question

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

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Answer 4

Question

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

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Answer 5

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Answer 6

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Answer 7

Chapter 2, Problem 1.1P

To determine

To explain: If the thought of finishing an expensive meal even if the appetite is full is right or not.

Concept Introduction:

Sunk costs are costs which cannot be recovered once it’s incurred. The business does not consider sunk costs when planning on the production or selling of the goods, because they cannot alter these costs to reduce total costs or increase revenue. Sunk costs are a part of every business organization. Thus, one can work effectively to reduce these sunk costs.

Answer 8

Expert Solution & Answer

Explanation of Solution

Since the cost of the expensive meal is already incurred, it cannot be recovered. Thus, it is a sunk cost. Since now the sunk cost is already incurred, it should not be considered in the decision making to maximize utility. Thus, if an individual cleans their plate despite being full, they are reducing their utility because they have already received the maximum utility from the dish when they are full. Irrespective of eating the entire dish or leaving it halfway, still means you have paid for the entire dish. Thus, one can rather choose to share the dish or pack the leftovers to eat at home, thus, keeping their utility intact.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 2 - Prob. 1.1P Ch. 2 - Prob. 1.2P Ch. 2 - Prob. 2.3P Ch. 2 - Prob. 2.4P Ch. 2 - Prob. 3.5P Ch. 2 - Prob. 3.6P Ch. 2 - Prob. 3.7P Ch. 2 - Prob. 3.8P Ch. 2 - Prob. 4.9P

Explanation of Solution

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Chapter 2 Solutions