A certain simple economy has two sectors: work and play. To produce $1 of work requires $0.7 of work and $0.2 of play. To produce $1 of play requires $0.1 of work and $0.6 of play. There is also an external demand for $2600 of work and $2300 of play. To meet the external demand, the economy must produce $ of work and $ of play of work and $ of play. When the external demand is met, the internal consumption is $

A certain simple economy has two sectors: work and play. To produce $1 of work requires $0.7 of work and $0.2 of play. To produce $1 of play requires $0.1 of work and $0.6 of play. There is also an external demand for $2600 of work and $2300 of play. To meet the external demand, the economy must produce $ of work and $ of play of work and $ of play. When the external demand is met, the internal consumption is $

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 2SQ

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A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they dont like the taste. From an economic perspective, the company should keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.
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An economy depends on two basic products, wheat and oil. To produce 1 metric ton of wheat requires 0.23 metric tons of wheat and 0.32 metric tons of oil. Production of 1 metric ton of oil consumes 0.08 metric tons of wheat and 0.13 metric tons of oil. Find the production that will satisfy a demand for 500 metric tons of wheat and 870 metric tons of oil. The input-output matrix is Aequals left bracket Start 2 By 2 Matrix 1st Row 1st Column 0.23 2nd Column 0.08 2nd Row 1st Column 0.32 2nd Column 0.13 EndMatrix right bracket. [ ? ]metric tons of wheat is required to satisfy the demand.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should keep the hamburger on the menu because they've spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.
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