b) Automobile repair shops typically recommend that their customers change their oil and oil filter every 3000 miles. Your automobile user's manual suggests changing your oil every 5000-7000 miles. If you drive your car 15,000 miles each year and an oil and filter change costs $30, how much money would you save each year if you had this service performed every 5,000 miles.

b) Automobile repair shops typically recommend that their customers change their oil and oil filter every 3000 miles. Your automobile user's manual suggests changing your oil every 5000-7000 miles. If you drive your car 15,000 miles each year and an oil and filter change costs $30, how much money would you save each year if you had this service performed every 5,000 miles.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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Automobile repair shops typically recommend that their customers change their oil and oil filter every 3000 miles. Your automobile user’s manual suggests changing your oil every 5000-7000 miles.If you drive your car 15,000 miles each year and an oil and filter change costs $30, how much money would you save each year if you had this service performed every 5,000 miles.
Automobile repair shops typically recom- mend that their customers change their oil and oil filter every 4,000 miles. Your automobile user's manual suggests changing your oil every 6,500–8,500 miles. If drive you your car 52,000 miles each year and an oil and filter change costs $31, how much money would you save each year if you had this service performed every 6,500 miles?
If you're planning to buy at nearby sari-sari store, grocery, or mall, it's hard to believe that scarcity is a problem. Are laundry detergents scarce? You will notice that even the stores have enough stocks of commodities to sell, you probably cannot afford to buy all you want, and so you have to make choices on how to use your limited resources (money, time, energy). Given P500.00 as your allowance for the whole week. How will you allocate your budget for yo expenses for the week? Show your regular allowance using a pie chart.
Often it makes a lot of sense to spend some money now so you can save more money in the future. Consider filtered water. A high-tech water filter costs about $60 and can filter 7,200 ounces of water. This will save you purchasing two 20-ounce bottles of filtered water every day, each costing $1.15. The filter will need replacing every 6 months. How much will this filter save you in a year’s time?
Mary Ann requires approximately 30 pounds of bananas each month, January through June, and 35 pounds of bananas each month, July through December, to make banana cream pies for her friends. Bananas can be bought at a local market for 40 cents/lb. If Mary Ann’s cost of money is 3%, approximately how much should she set aside at the beginning of each year to pay for the bananas
In year one, Adam earns $1,000 and saves $100. In year 2, Adam gets a $500 raise so that he earns a total of $1,500. Out of that $ 1,500, he saves $ 200. What is Adam's MPC out of his $500 raise?
Cassie's Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What should she do? She should cut her losses and sell the quilt now. It does not matter what she does; she is going to take a loss on her project. She should purchase the period fabric, complete the task and then sell the quilt. She should not do anymore work on the quilt because she has already spent too much time on it and has not been paid for that time
If you're planning to buy at nearby sari-sari store,grocery,or mall,it's hard to believe that scarcity is a problem.Is laundry detergent scarce?you will notice that even the stores have enough stocks of commodities to sell,you probably cannot afford or buy all you want,and so you have to make choices on how to use your limited resources(money,time,energy) Given Php500 as your allowance for the whole week.How will you allocate your budget for your expenses for the week? list your choices and describe the advantages and disadvantages of each choices. Choices 1 Advantages disadvantages 1. 1. 2. 2. 3. 3. 4. 4. Choices 2 Advantages disadvantages 1. 1. 2. 2. 3. 3. 4. 4. Choices 3 Advantages disadvantages 1. 1. 2. 2. 3.…
A Flexible Savings Account (FSA) plan allows you to put money into an account at the beginning of the calendar year that can be used for medical expenses. This amount is not subject to federal tax. As you pay medical expenses during the year, you are reimbursed by the administrator of the FSA until the money is exhausted. From that point on, you must pay your medical expenses out of your own pocket. On the other hand, if you put more money into your FSA than the medical expenses you incur, this extra money is lost to you. Your annual salary is $80,000 and your federal income tax rate is 30%. [1] Assume that your medical expenses in a year are normally distributed with mean $2000 and standard deviation $500. Build an @RISK model in which the output is the amount of money left to you after paying taxes, putting money in an FSA, and paying any extra medical expenses. Experiment with the amount of money put in the FSA, using a RISKSIMTABLE function. [2] Rework part a, but this time assume…
Stan Moneymaker needs 15 gallons of gasoline to top off his automobile’s gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.90 per gallon and Stan’s car gets 25 mpg for in-town driving. Should Stan make the trip to get less expensive gasoline? Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on the environment. What other factors (cost and otherwise) should Stan consider in his decision making?
Mika earns $379 per week which she spends entirely at the grocery store, purchasing either food or alcohol. The price of food is $1/unit, while the price of alcohol is $4/unit. Mika receives an additional $50/week in food stamps that can only be only be used to buy food at the grocery store (so, this money could be used to buy food but NOT alcohol). Mika knows someone who will give her cash in exchange these food stamps at a rate of $0.50 in cash for every $1 in food. stamps. Cash, of course, can be used to buy either food or alcohol. What is the vertical coordinate of the vertical intercept of Mika's budget constraint if she were to graph quantity of food on the horizontal axis and quantity of alcohol on the vertical axis? (Note: The answer may not be a whole number, so round to the nearest hundredth)
A large electric utility company releases 62 million tons of greenhouse gases (mostly carbon dioxide) into the environment each year. This company has committed to spending $1.2 billion in capital over the next five years to reduce its annual emissions by 5%.More will be spent after five years to reduce greenhouse gases further. Solve, a. What is the implicit cost of a ton of greenhouse gas? b. If the United States produces 3 billion tons of greenhouse gases per year, how much capital must be spent to reduce total emissions by 3% over the next five years based on your answer in Part (a)?