Group Assignment 2 (3)
.docx
keyboard_arrow_up
School
University of Mississippi *
*We aren’t endorsed by this school
Course
MANAGERIAL
Subject
Economics
Date
Jan 9, 2024
Type
docx
Pages
2
Uploaded by CountLemurPerson979
Group Assignment #2
Due Sunday, October 15
Problem 1
Consider a female college student with a weekly food budget of $100. Because she lives on campus and does not have transportation, her only two food options are cafeteria meals priced $4.00 per serving, and veggie bowls at an on-campus vender priced $10.00 each. Assume that no other options are available, but these two foods are accessible anytime during the week. 1.1.Present her weekly isocost line, both graphically and mathematically. Discuss what the isocost line tells you.
1.2.Recommended calorie intake for this student is 14,000 kcal per week. The cafeteria meals contain 1000 kcal per serving, and each veggie bowl contains 500 kcal. Present her isonutrient line (in this case 14,000 kcal isocalorie line) graphically and mathematically.
1.3.Put the isocost line and isonutrient line together. What exact combination of cafeteria meals and veggie bowls would exactly meet the calorie recommendation AND the budget? (Fractional units are
okay.) Explain.
1.4.If she usually consumes 15 cafeteria meals and 4 veggie bowls per week, what can you say about her
choice? What does it tell you about her utility function?
1.5.What are some of the things the university can do to make her healthier choices? [There might be more than one way.] How exactly does it work? Explain your answer within the framework of consumer equilibrium. Problem 2
2.1
If own price elasticity of sugar-sweetened beverages is -0.8 and a soft drink tax increases the price by 5%, soft drink consumption is expected to decrease by what %? If the target reduction in soft drink consumption is 10%, how much must the tax increase the price?
2.2
In 2019, an article on Washington Post (
https://www.washingtonpost.com/opinions/local-
opinions/dc-s-proposed-soda-tax-sounds-sweeter-than-it-is/2019/11/01/8305cf44-fa5f-11e9-ac8c-
8eced29ca6ef_story.html?gclid=CjwKCAjwkvWKBhB4EiwA-
GHjFu0BzYMkD_pz_9cn_sx1UmC1Gu6rQXnuZ6ToIRdTFh4BVt8qJxWwrBoCT3kQAvD_BwE
) argued that soda taxes are bound to fail. Do you agree? Why or why not? Explain your answer using the concept of elasticities.
Individuals should work on the following problems as much as they can before joining the group meeting. Each group is responsible for arranging a time that works for all members to meet on Zoom. Somebody in the group should be the Zoom meeting host and record the meeting. The meetings should
start with each person saying their name
. Everyone should have the camera turned on for the meeting duration and share their answers to help one another to learn. The Zoom session should be about 15 minutes. Each group submits the Zoom recordings, and individuals submit the papers by the deadline. While the group members may have similar answers, everyone should write their own paper and not copy-and-paste from others. See the syllabus for the grading criteria.
Problem 3
Use Figure 6.3 from Davis & Serrano textbook and show how the slopes and feasible choice set will change for the following scenarios.
3.1
What happens to Figure 6.3 if the time price of food at home T
H
decreased (e.g., you replace your conventional oven with a convection oven, which cooks faster)?
3.2
What happens to Figure 6.3 if the money price of FAFH P
A
increased (e.g., your favorite restaurant raised the prices on its menu)?
3.3
What happens to Figure 6.3 if the amount of nutrients in FAFH α
1
A
decreased (e.g., saturated fat)?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
4-5 Processing Insurance Claims Your insurance firm processes claims through its newer, larger, high-tech facility and its older, smaller, low-tech facility. Each month, the high-tech facility handles 10,000 claims, incurs $100,000 in fixed costs and $100,000 in variable costs. Each month, the low-tech facility handles 2,000 claims, incurs $16,000 in fixed costs and $24,000 in variable costs. If you anticipate a decrease in the number of claims, where will you lay off workers?
arrow_forward
10.27 only
arrow_forward
None
arrow_forward
Your friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, please choose the graph that shows the relationship between CLaire's selling price per hoodie and profit margin?
Costs ($)
Base Hoodie Cost
$30
Craft Supplies to Design
$10
Selling Website Service Charge
5%
arrow_forward
Please no written by hand solution
Keiko is saving money to buy a bike. She has $52 and is going to save an additional $8 each week. The bike costs $164. In how many weeks will she have enough money to buy the bike?
arrow_forward
Type out the correct answer ASAP with proper explanation of the each option given in the attachment.will give you thumbs up only for the correct answer within 40 50 minutes.thank you
arrow_forward
Fig 2.1 illustrates the law of diminishing returns in seeking the optimum system (or component) performance and hence the need to balance the performance against the cost. Give examples of two pairs of characteristics other than performance versus cost where optimizing one frequently competes with the other, and briefly explain why they do.
arrow_forward
Please do not give solution in image format thanku
Calculate the TEV for a standard 1-day car rental at Universal assuming: ·
Price of next-best alternative (Budget): $50 per day
· Average price of 1 gallon of fuel: $4.00
· Average driving distance 200 miles
· Average fuel economy of Universal car: 25 miles/gallon
· Average fuel economy of Budget car: 20 miles/gallon
· Value of your time: $50 per hour
· Time to rent Universal car: 20 minutes
· Time to rent Budget car: 15 minutes
arrow_forward
Last year Bob purchased a plane ticket for $300. He was unable to take the trip so he received a voucher to use
towards a future trip. The voucher is set to expire.
Bob uses the voucher to take a vacation. While on vacation he spends $600 on a hotel and $400 on food and
various other expenses. He did not have any vacation time at work so he took a few days off during which time
he would have earned $450.
John's explicit cost of taking the vacation is $
John's implicit cost of taking the vacation is $
John's opportunity cost of taking the vacation is $
Enter whole numbers with no dollar sign.
arrow_forward
Home
Juanita is deciding whether to buy a skirt that she wants, as
well as where to buy it. Three stores carry the same skirt,
but it is more convenient for Juanita to get to some stores
than others. For example, she can go to her local store,
located 15 minutes away from where she works, and pay a
marked-up price of $103 for the skirt:
Travel Time Each Way
(Minutes)
Store
15
Local Department Store
30
Across Town
60
Neighboring City
Marked-up
price
Juanita's office
Price of a Skirt
(Dollars per skirt)
103
85
63
Discounted
price
Original price
C
C
O
Ⓒ
arrow_forward
Utilities
Some rental units have certain expenses included with the
rent. Water, electricity, and heating are often referred to as
utilities. Some tenancy agreements require the tenant to pay
for utilities.
7. a) Bianca and Sarah rent a semi-detached house. They
pay for utilities as well as rent. Complete the chart to
determine their estimated annual cost for utilities.
Average
Billing
Frequency
Estimated
Amount Billed Annual Cost
Item
Natural gas
Monthly
$118
Electricity
Bi-monthly
$140
Water
Quarterly
$120
Estimated
Total Annual
Cost
b) A news report claimed that utility costs would rise by
an average of 10% next year. Estimate how much
Bianca and Sarah can expect to pay for utilities
next year.
0
arrow_forward
please helps asap
arrow_forward
How does logistics contribute to time and place utility?
arrow_forward
2
arrow_forward
Problem 2: Cleo's rides
Cleo has a fixed weekly budget for bike and taxi rides, and the more the rides she makes, the happier
she is. When the price of each bike ride was 3 yuan, she used to take the bike four times per week. Now the
price of each bike ride went down to 1 yuan, but she has to pay a weekly subscription fee of 9 yuan to ride
bikes. Her new choice is to make three rides per week. Is Cleo better off, worse off, or indifferent compared
to before?
arrow_forward
Store
Local Shoe Store
Different Neighborhood in Town
Rural Outlet
Travel Time Each Way
(Minutes)
15
30
60
Juanita earns an hourly wage of $34 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job
costs her $34 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once
she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the boots, such as
gas.
Store
Local Shoe Store
Price of a Boots
(Dollars per boots)
110
103
82
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Opportunity Cost of Time
(Dollars)
Price of a Boots
(Dollars per boots)
110
Total Cost
(Dollars)
103
82
Different Neighborhood in Town
Rural Outlet
Assume that Juanita considers both her opportunity costs and the price of boots when making…
arrow_forward
1. Bradley is attending a 4D3N (4 days and 3 nights) conference in Kuching. He has already
paid RM350 for the conference fee. His airfare costs RM210 and his transportation RM34.
He is staying in a hotel that costs RM69.95 per night and he has budgeted RM50 for his
meals each day. His company has provided him a subsidy of RM500 for this trip. Help
calculate Bradley's travel budget to show the total budget and the amount Bradley needs
to personally cover.
arrow_forward
6 Assignment Saved to this PC ✓
Design Layout References Mailings
ctions: On
O Search (Alt+Q)
You
Review View Help
In a one-shot game, if you advertise and your rival advertises, you will each earn $5
million in profits. If neither of you advertises, your rival will make $4 million and
you will make $2 million. If you advertise and your rival does not, you will make
$10 million and your rival will make $3 million. If your rival advertises and you do
not, you will make $1 million and your rival will make $3 million. The profits in
each cell are shown as (your profit, your rival's profit).
a) Fill in the payoffs in the following table.
Advertise
Do Not Advertise
Your Rival
H
Advertise
monica faggett
b) Do you have a dominant strategy? Why or why not?
c) Does your rival have a dominant strategy? Why or why not?
d) What is the Nash equilibrium in this game?
Accessibility: Investigate
Do Not Advertise
Focus
arrow_forward
Edna is living in a retirement home where most of her needs are taken care of, but she has some discretionaryspending. Based on the basket of goods in Table 22.5, by what percentage does Edna’s cost of living increasebetween time 1 and time 2?
arrow_forward
Teresa works mowing lawns and babysitting. She earns 8.40 an hour for mowing and 6.90 an hour for babysitting. How much will she earn for 5 hours of mowing and 1 hour of babysitting?
arrow_forward
Give typing answer with explanation and conclusion
A state department of health is considering a public awareness campaign to encourage vaccination. It determines that the cost of this campaign would be $740,000 per year for the next 6 years. It estimates that the campaign would reduce rates of illness and communicable disease. At the end of the first year of the campaign, the resulting savings would be $1,150,000; the savings would decrease by $100,000 each of the following 5 years. Assuming a discounting factor of 5.5%, compute
arrow_forward
4. If TC =
12q
12q? +32g + 32 and have a budget of 100000$, how many units we
can produce and stay below our budget? (Excel)
arrow_forward
question attached!
arrow_forward
Fill the Table
Total
Total
Fixed Variable
Total
Costs
Costs
Total
Average
Total Costs
Costs
$100
$140
$165
$210
$295
$425
$625
Product
(TFC)
(TVC)
$50
$50
$50
$90
$50
$115
$50
$160
$50
$245
$50
$375
$50
$575
1
4
9.
Total
Total
Fixed Variable
Total Marginal
Total
Costs
Costs
Costs
Costs
Product
(TFC)
$50
(TVC)
$0
|(TC)
$50
(MC)
na
1
$50
$50
$50
$50
$50
$100
2
$90
$140
$115
$165
4
$160
$210
$50
$50
$50
$295
$425
$245
6.
$375
7
$575
$62
LolcolN
567
arrow_forward
describe new changes to kiwisaver
arrow_forward
4. EMERGENCY! Production just informed management that one of its five glycol squeezers has been destroyed by a rogue computer virus. Production capability is now only 23000 gallons at most. The squeezer cannot be fixed and IceLess cannot afford a replacement. This breakdown will NOT lower fixed costs. This breakdown will not change variable cost per unit, either. If only 23000 gallons are produced, and the earning target remains $94400 above fixed costs, what price per gallon must now be charged? (show your calculations)
IceLess is an anti-icing solution sold in gallon plastic jugs. It is poured into the windshield washer bottle of your car. Wash your windshield and the solution prevents the glass from icing over for about four hours. Production incurs the following fixed and variable costs. It is priced initially at $5.50 per gallon.
Fixed costs (per year) Variable Costs per gallon
Rent: $18000 Glycol: $1.50…
arrow_forward
A popular buffet has two types of customers. Type A who are willing to pay $25 but only eat for $15, and type B who value the food at $30 but eat for $20. There are 200 customers visiting daily and from their experience the restaurant knows they have 40% type A and 60% type B customers. How much revenue and profit will they make daily?
Only typed answer
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Related Questions
- 4-5 Processing Insurance Claims Your insurance firm processes claims through its newer, larger, high-tech facility and its older, smaller, low-tech facility. Each month, the high-tech facility handles 10,000 claims, incurs $100,000 in fixed costs and $100,000 in variable costs. Each month, the low-tech facility handles 2,000 claims, incurs $16,000 in fixed costs and $24,000 in variable costs. If you anticipate a decrease in the number of claims, where will you lay off workers?arrow_forward10.27 onlyarrow_forwardNonearrow_forward
- Your friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, please choose the graph that shows the relationship between CLaire's selling price per hoodie and profit margin? Costs ($) Base Hoodie Cost $30 Craft Supplies to Design $10 Selling Website Service Charge 5%arrow_forwardPlease no written by hand solution Keiko is saving money to buy a bike. She has $52 and is going to save an additional $8 each week. The bike costs $164. In how many weeks will she have enough money to buy the bike?arrow_forwardType out the correct answer ASAP with proper explanation of the each option given in the attachment.will give you thumbs up only for the correct answer within 40 50 minutes.thank youarrow_forward
- Fig 2.1 illustrates the law of diminishing returns in seeking the optimum system (or component) performance and hence the need to balance the performance against the cost. Give examples of two pairs of characteristics other than performance versus cost where optimizing one frequently competes with the other, and briefly explain why they do.arrow_forwardPlease do not give solution in image format thanku Calculate the TEV for a standard 1-day car rental at Universal assuming: · Price of next-best alternative (Budget): $50 per day · Average price of 1 gallon of fuel: $4.00 · Average driving distance 200 miles · Average fuel economy of Universal car: 25 miles/gallon · Average fuel economy of Budget car: 20 miles/gallon · Value of your time: $50 per hour · Time to rent Universal car: 20 minutes · Time to rent Budget car: 15 minutesarrow_forwardLast year Bob purchased a plane ticket for $300. He was unable to take the trip so he received a voucher to use towards a future trip. The voucher is set to expire. Bob uses the voucher to take a vacation. While on vacation he spends $600 on a hotel and $400 on food and various other expenses. He did not have any vacation time at work so he took a few days off during which time he would have earned $450. John's explicit cost of taking the vacation is $ John's implicit cost of taking the vacation is $ John's opportunity cost of taking the vacation is $ Enter whole numbers with no dollar sign.arrow_forward
- Home Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the skirt: Travel Time Each Way (Minutes) Store 15 Local Department Store 30 Across Town 60 Neighboring City Marked-up price Juanita's office Price of a Skirt (Dollars per skirt) 103 85 63 Discounted price Original price C C O Ⓒarrow_forwardUtilities Some rental units have certain expenses included with the rent. Water, electricity, and heating are often referred to as utilities. Some tenancy agreements require the tenant to pay for utilities. 7. a) Bianca and Sarah rent a semi-detached house. They pay for utilities as well as rent. Complete the chart to determine their estimated annual cost for utilities. Average Billing Frequency Estimated Amount Billed Annual Cost Item Natural gas Monthly $118 Electricity Bi-monthly $140 Water Quarterly $120 Estimated Total Annual Cost b) A news report claimed that utility costs would rise by an average of 10% next year. Estimate how much Bianca and Sarah can expect to pay for utilities next year. 0arrow_forwardplease helps asaparrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co