Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 9DQ
To determine
How Pre-commitment are useful in solving self-control problem.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
One type of systematic error arises because people tend to think of benefits in percentage terms rather than in
absolute dollar amounts. As an example, Samir is willing to drive 20 minutes out of his way to save $4 on a grocery
item that costs $10 at a local market. But he is unwilling to drive 20 minutes out of his way to save $10 on a laptop that
costs $400 at a local store. In percentage terms, how big is the savings on the grocery item? On the laptop? In absolute
terms, how big is the savings on the grocery item? On the laptop? If Samir is willing to sacrifice 20 minutes of his time
to save $4 in one case, shouldn't he also be willing to sacrifice 20 minutes of his time to save $10?
You are the manager of an organization in America that distributes blood to hospitals in all 50states and the District of Columbia. A recent report indicates that nearly 50 americans contractHIV each year through blood transfusions. Although every pint of blood donated in the unitedstates undergoes a battery of nine different test, existing screening methods can detect only theantibodies produced by the body’s immune system-not foreign agents in the blood, newlyinfected HIV donors can pass along the virus through blood that has passed existing screeningtests. Happily, researchers have developed a series of new tests aimed at detecting and removinginfections from donated blood before it is used in transfusions. The obvious benefit of these testsis reduced incidence of infection through blood transfusions. The report indicates that the currentprice of decontaminated blood is $60 per pint. However, if the new screening methods areadopted, the demand and supply for…
You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. A recent report indicates that nearly 50 Americans contract HIV each year through blood transfusions. Although every pint of blood donated in the United States undergoes a battery of nine different tests, existing screening methods can detect only the antibodies produced by the body’s immune system – not foreign agents in the blood. Since it takes weeks or even months for these antibodies to build up in the blood, newly infected HIV donors can pass along the virus through blood that has passed existing screening tests. Happily, researchers have developed a series of new tests aimed at detecting and removing infections from donated blood before it is used in transfusions. The obvious benefit of these tests is the reduced incidence of infection through blood transfusions. The report indicates that the current price of decontaminated blood is $60 per pint.…
Chapter 8 Solutions
Economics (Irwin Economics)
Knowledge Booster
Similar questions
- You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. A recent report indicates that nearly 50 Americans contract HIV each year through blood transfusions. Although every pint of blood donated in the United States undergoes a battery of nine different tests, existing screening methods can detect only the antibodies produced by the body’s immune system—not foreign agents in the blood. Since it takes weeks or even months for these antibodies to build up in the blood, newly infected HIV donors can pass along the virus through blood that has passed existing screening tests. Happily, researchers have developed a series of new tests aimed at detecting and removing infections from donated blood before it is used in transfusions. The obvious benefit of these tests is the reduced incidence of infection through blood transfusions. The report indicates that the current price of decontaminated blood is $60 per pint.…arrow_forwardSeveral local golf tournaments are coming up and Tommy needs to purchase golf balls in preparation. He has set a $150 budget and will choose golf balls that will give him as much utility as possible. A local sporting goods store sells a box of golf balls at a retail price of $30 and Tommy purchases 2 boxes. A few buddies tell Tommy about an online store that offers boxes of golf balls at a discounted price of $21, while all other prices remain the same, and Tommy decides to purchase 3 additional boxes of golf balls to keep on hand. Given this information, plot Tommy's demand curve for golf balls. Provide your answer below: Price of Golf Ball Boxes Online Store (4,$22) 20 Local Store (1,$10) —101 Quantity of Golf Ball Boxesarrow_forwardSean is arguing with his girlfriend, Yvette. They have been going out for a little more than two years. YVETTE: I'm leaving you, Sean. Get over it. SEAN: Are you saying that being single will make you happier than you've been with me? Speaking personally, I think the utility we've had in this relationship was much more than you could have had if you'd been single this whole time! YVETTE: I had taken an economics class and the word "utility" rings a bell. It's not that at all. We've had a fine time. It's that the utility I would get by continuing our relationship isn't worth it anymore. SEAN: I've never been dumped by someone citing the law of before. You're a piece of work, you know that? Yvette doesn't hear. She has already walked off, leaving Sean feeling like something of a sunk cost.arrow_forward
- The U.S. government spends over $74 billion on its Supplemental Nutrition Assistance Program (SNAP) to provide millions of Americans with the means to purchase food. Beneficiaries use an Electronic Benefits Transfer (EBT) card to transfer their government benefits from a federal account to a retailer account. The funds on an EBT card cannot be sold for cash or used to purchase nonfood items. The average SNAP benefit is about $284 per month. Suppose that, in the absence of SNAP, the average consumer must divide $600 in monthly income between food and “all other goods” such that the following budget constraint holds: $600 = $12A + $4F, where A is the quantity of “all other goods” and F is the quantity of food purchased. Using the vertical axis for “all other goods,” draw the consumer’s budget line in the absence of SNAP. What is the market rate of substitution between food and “all other goods”? On the same graph, show how SNAP alters the average consumer’s budget line. Would this…arrow_forwardDonuts are a big thing in Portland, OR. You go into one of the many donut establishments to purchase some number of these tasty (and even vegan or gluten free if required) treats. Let's say that the first donut has higher utility for you, so you are willing to pay up to $2 for it. For the second donut you are willing to pay $1.50, the third $1, a fourth $0.50 and the fifth $0.00. This particular bakery in Portland charges an average of $1 per donut. If you are a rational buyer (which can be hard when faced with so many different delicious donuts) then how many donuts do you purchase, and how much consumer surplus (i.e., money saved compared to what you were willing to spend) do you have? O 4 donuts, $5 O 2 donuts, $5 O 3 donuts, $1.50 O 1 donut, $0.50arrow_forwardThe New York Subway Bakery is famous for selling large "black and white cookies." The top of each cookie has one-half chocolate icing and one-half vanilla icing. Mario, the baker, bakes at night after the customers leave. Mario wants to bake two hundred fifty black and white cookies. Mario has thirteen pounds of sugar. there are approximately eleven cups of sugar in a pound. Mario needs three cups of sugar for each batch of black and white cookies. Each batch of cookies dough makes five large black and white cookies. Does Mario have enough sugar to bake two hundred fifty black and white cookies? How many whole batches of black and white cookies can Mario bake? Mario has five dozen cookie boxes. Each cookie box holds four black and white cookies. How many cookies boxes does Mario use to package the black and white cookies he bakes? Between what two whole numbers are the total black and white cookies boxes Mario uses? Mario charges twenty-seven dollars and eighty-five cents per box of…arrow_forward
- O Susie knows that too many sugary treats, while delicious when eaten, have long-term adverse effects on weight and health. Based on this information, a behavioral economist would expect Susie to Multiple Choice carefully weigh the short-term benefits against the long-term costs and make a rational decision about how many treats to eat. eat more sugary treats than is optimal, as she likely gives more weight to present events and outcomes than to ones in the future. give away most of her sugary treats in an effort to resist temptation. compute the caloric intake and calculate how many hours exercise would be needed to burn off the calories from each treat. 23 11,208 OCT Prev 1 of 11 tv Next > D Åarrow_forwardHelen has just graduated from SFA with a degree in accounting and received two job offers: one from Deloitte with salary $105,000 per year, and the other from KPMG for $85,000. But Helen rejected both offers and stayed in East Texas to pursue her passion of teaching others to ride horses. She spends $25,000 per year on feed and supplies for her horses. Suppose Helen has 30 clients per year who each pay her $8,000 for a year of riding lessons. a. What are her accounting profits? b. What are her economic profits?arrow_forwardEric, Kenji, and Paolo are roommates who are trying to decide how much money each should contribute to a party they are throwing. • Paolo does not care about the party and is on a tight budget. Therefore, he prefers to contribute no money to the party, and his utility declines at a constant rate as the roommates increase the amount of money they spend. • Kenji would ideally contribute $15 because he only wants to buy pizza. However, he would prefer contributing $55 to contributing $0 and not having a party at all. • Eric wants to buy a $120 keg of beer and $45 worth of pizza. Therefore, he would ideally like each to contribute $55 to the party, but if the others are unwilling to contribute that much, he would settle for buying just the pizza (and contributing $15 each) and asking guests to bring beer. Suppose the three roommates vote on spending either $0, $15, or $55 on the party using the Borda count system of voting. That is, each roommate awards three points to his first choice,…arrow_forward
- The law of diminishing marginal utility states that Multiple Choice total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed. beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. price must be lowered to induce firms to supply more of a product. it will take larger and larger amounts of resources beyond some point to produce successive units of a product. 60 SEP 6 < Prevarrow_forward6. Complete the accompanying table and answer the accompanying questions. (LO1, L06, L07) a. At what level of the control variable are net benefits maximized? b. What is the relation between marginal benefit and marginal cost at this level of the variable? Control Variable Q 100 101 102 103 104 105 106 107 108 109 110 Total Benefits B(Q) 1200 1400 1590 1770 1940 2100 2250 2390 2520 2640 2750 Total Cost C(0) 950 SPONG Net Benefits N(Q) Marginal Benefit MB(0) 210 Marginal Cost MC(0) 60 70 80 90 100 110 120 130 140 150 160 Marginal Net Benefits MNB(0)arrow_forwardYou are the manager of a local sporting goods store and recently purchased a shipment of 60 sets of skis and ski bindings at a total cost of $25,000 (your wholesale supplier would not let you purchase the skis and bindings separately, nor would it let you purchase fewer than 60 sets). The community in which your store is located consists of many different types of skiers, ranging from advanced to beginners. From experience, you know that different skiers value skis and bindings differently. However, you cannot profitably price discriminate because you cannot prevent resale.There are about 20 advanced skiers who value skis at $400 and ski bindings at $275; 20 intermediate skiers who value skis at $300 and ski bindings at $400; and 20 beginning skiers who value skis at $200 and ski bindings at $350.What is your maximum revenue if you charge a separate price for skis and bindings?$ What is your maximum revenue if you sell skis and bindings as a bundle?$arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning