econ 522 hw 6 solutions S2024

Buying and selling textbooks are two separate decisions made at the margin. Textbooks create value both when they are bought and when they are sold. Think about your decision to buy the textbook for this course. You paid $200 for the book, but you would have been willing to pay $450 to use the book for the semester. Suppose that at the end of the semester you could keep your textbook or sell it back to the bookstore. Once you have completed the course, the book is worth only $70 to you. The bookstore will pay you 50% of the original $200.

Buying and selling textbooks are two separate decisions made at the margin. Textbooks create value both when they are bought and when they are sold.Think about your decision to buy the textbook for this course. You paid $200 for the book, but you would have been willing to pay $450 to use the book for the semester. Suppose that at the end of the semester you could keep your textbook or sell it back to the bookstore. Once you have completed the course, the book is worth only $70 to you. The bookstore will pay you 50% of the original $200.How much total value have you gained? $

4-4 Supplier Bids Your company is contemplating bidding on an RFP (request for proposal) for 100,000 units of a specialized part. Why might the amount be more than the requesting company actually wants?

A market's deadweight loss is calculated as: O the economic loss that a firm has when it is not producing its profit-maximizing output. O the price at equilibrium minus the price at actual quantity. the loss to consumers when a product malfunctions or fails to meet expectations. O the total economic surplus at the efficient quantity minus the total economic surplus at the actual quantity.

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How do people make the decision to purchase Qatar airways tickets? You could talk either about evaluative criteria or decision rules ?

You have been working as a manager of fashion store. During your work you have saved $50,000. You decided to use the money you saved to start your own business. You decided to use the money you saved to buy the materials. You also decided to utilize a store you own to home your business. The store you used for your business could have been rented for year. You hired a clerk to help you in the store that will cost $20,000 per year. The interest you could have earned on the $50,000 you used to buy the materials was $3,000 per year. Furthermore, you decided to manage your own business and you decided to quit your job that was paying $28,000 per yearYou paid $8,000 for utility. What is your explicit cost? Assume that your total sale for the year was $160,000. What is your implicit cost, what is the accounting profit? What is your economic profit?

Suppose you own a profitable small business in another state and you wanted to hold a meeting, but you needed to make a decision on whether to fly to the other state using your free frequent-flyer miles and pay a $100 cab-fare or hold a video conference meeting (at a facility that you have already prepaid a $2000 access-fee but must also paid a $155/hour to use the facility). What option should you choose?

Suppose you are in charge of snow removal in your community and you are trying to figure out if you should clear snow on a street. You survey the 20 people that live on that street who say they they each value having snow cleared on their street at $50 per year. The snow removal only costs $600 per year so you hire a snow plow and clear the snow that winter. When you ask for donations to pay for the snow removal you only receive $80. What does this result show?   a   The people on that street were free-riders.   b   The snow removal suffered from the Tragedy of the Commons problems.   c   The snow removal cost must have been greater than their economic benefit.   d   You must have overestimated the value of a fireworks show.     Please suggest me right answer with explanation

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what are fundamental factors considered when making decisions to achieve various goals of a firm

Ahmed is considering his plans for the coming weekend. He is currently working as a marketing specialist in a big advertising company. He normally spends the weekend with family but this weekend he is thinking of going on a camping trip that would cost him about $1,900. At the same time, his manager asked him whether he can help during the weekend and the company will be willing to pay him an overtime bonus of $1,000. If Ahmed goes on the camping trip, he can manage to provide a number of quick consultancy services that would earn him around $2,500. If Ahmed decided to go on the camping trip what would be the incremental cost of that decision ($)? a. None of the given answerS O b. 1,000 O c. 2,500 O d. 1,900 O e. 600

You just spent $40 on a new movie for your collection. You would have preferred the director's cut but discovered when you got home that you bought the theatrical version. The store you bought the movie from has an “all sales final" policy, but you could resell the movie online for $25. The director's cut sells for $50. Instructions: Round your answer to the nearest whole number. By how much would you need to value the director's cut over the theatrical version for it to make sense for you to sell the version you bought and buy the director's cut? $ 30 X

6) You have been assigned to create a new TV game show, and you have an interesting idea that you call, “I WANT TO BE A MILLIONAIRE.” The basics are: 1) two contestants; 2) the show begins with each contestant being given $1 million (!), and then 3) they begin playing a game that can increase or decrease that $1 million. You worry that the initial outlay of $2 million will stun your producers, so you decide to prepare them with a simpler version of your game that you call: “I WANT $3.” There are four steps in this simpler game: I. There are two contestants/opponents (who do not know each other and cannot communicate with each other during the game). II. Each player is given $3 at the start of the game. III. Independently and simultaneously, each player must choose whether they want to add $0, $1, $2 or $3 to their initial stake of $3. Doing so reduces their opponent’s award by $0, $2, $4, or $6, respectively. IV. Each player knows that their payoff at the end of the game is based on…

6) You have been assigned to create a new TV game show, and you have an interesting idea that you call, “I WANT TO BE A MILLIONAIRE.” The basics are: 1) two contestants; 2) the show begins with each contestant being given $1 million (!), and then 3) they begin playing a game that can increase or decrease that $1 million. You worry that the initial outlay of $2 million will stun your producers, so you decide to prepare them with a simpler version of your game that you call: “I WANT $3.” There are four steps in this simpler game: I. There are two contestants/opponents (who do not know each other and cannot communicate with each other during the game). II. Each player is given $3 at the start of the game. III. Independently and simultaneously, each player must choose whether they want to add $0, $1, $2 or $3 to their initial stake of $3. Doing so reduces their opponent’s award by $0, $2, $4, or $6, respectively. IV. Each player knows that their payoff at the end of the game is based on…

Study the following text and answer the questions below it. How to Build a One-Match Campfire Building a campfire that you can light with one match is simple if you follow these easy steps. The first step is to prepare a safe place for your campfire. Clear an area on the ground at least 3 feet wide, and put a circle of stones around it. Second, gather fuel. You will need several sizes of fuel: small twigs, medium sticks, and large sticks. The next step is to build a tepee. Put a handful of twigs in a small pile, and use the small sticks to build a small tepee over the pile. Leave spaces large enough to drop a lighted match through. Next, build a cabin around the tepee using the medium sticks. Fifth, place two large pieces of wood on either side of the cabin, and lay two or three long sticks on top to make a loose roof. The last step is to light a match and drop it through a space in the tepee. Soon you will enjoy the warmth of a nice fire, and your friends will admire your skill at…

Vanessa Denai owned forty acres of land in rural Louisiana. On the property were a 1,600-square-foot house and a metal barn. Denai met Lance Finney, who had been seeking a small plot of rural property to rent. After several meetings, Denai invited Finney to live on a corner of her land in exchange for Finney’s assistance in cutting wood and tending her property. Denai agreed to store Finney’s sailboat in her barn. With Denai’s consent, Finney constructed a concrete and oak foundation on Denai’s property and purchased a 190-square-foot dome from Dome Baja for $3,395. The dome was shipped by Doty Express, a transportation company licensed to serve the public. When it arrived, Finney installed the dome frame and fabric exterior so that the dome was detachable from the foundation. A year after Finney installed the dome, Denai wrote Finney a note stating, “I’ve decided to give you four acres of land surrounding your dome as drawn on this map.” This gift violated no local land-use…

6) You have been assigned to create a new TV game show, and you have an interesting idea that you call, “I WANT TO BE A MILLIONAIRE.”  The basics are: 1) two contestants; 2) the show begins with each contestant being given $1 million (!); and then 3) they begin playing a game that can increase or decrease that $1 million. You worry that the initial outlay of $2 million will stun your producers, so you decide to prepare them with a simpler version of your game that you call: “I WANT $3.” There are four steps in this simpler game: There are two contestants/opponents (who do not know each other and cannot communicate with each other during the game). Each player is given $3 at the start of the game. Independently and simultaneously, each player must choose whether they want to add $0, $1, $2 or $3 to their initial stake of $3. Doing so reduces their opponent’s award by $0, $2, $4, or $6, respectively. Each player knows that their payoff at the end of the game is based on their initial…

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Jeff is driving down the road. Jeff is texting, drinking a diet soda, and playing with the radio. Ricardo is driving on the road in the opposite lane of traffic. Ricardo is eating chicken wings and checking out a cute girl that is walking on the sidewalk adjacent to the road. Jeff and Ricardo hit each other head one. Jeff sustains $100,000 in damages. Ricardo sustains $10,000. It is determined that Jeff was 75% at fault and Ricardo was 25% at fault. Under a contributory negligence statute, what is Ricardo's possible recovery from Jeff for his injuries? O A. $25,000 B. $2,500 O C. s0 O D. $10,000

Economics Was it ethical for Tesla to hire a PR firm to monitor its employees? Yes or No? Write a paragraph to explain your answer. discussion

Judging types O Miss deadlines Take a long time to make decisions Are judgmental people Come through with their decisions at the last minute O Are all about their schedule and making decision upfront

Jordan is calculating the worth of a computer by comparing its costs and benefits, including quality, relative to similar laptops. In Jordan’s view, it is often worth it to spend a little more to obtain a product with higher performance. What is Jordan calculating?