In a small town, there's a mousepad factory which employs workers at $8 an hour, for forty- hour weeks. There is an old composer in town, who expects to complete anopera in a year's time. On the other hand, if he were not composing, he would give harp lessons, and charge his students $15 an hour. What is his opportunity cost inwriting his opera? Explain the assumptions you made in deriving this answer.

In a small town, there's a mousepad factory which employs workers at $8 an hour, for forty- hour weeks. There is an old composer in town, who expects to complete anopera in a year's time. On the other hand, if he were not composing, he would give harp lessons, and charge his students $15 an hour. What is his opportunity cost inwriting his opera? Explain the assumptions you made in deriving this answer.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter2: Scarcity And Opportunity Costs

Section: Chapter Questions

Problem 4E

See similar textbooks

Similar questions

A potential entrepreneur is trying to decide whether to open a new health spa. She currently makes $35,000 per year as an aerobics instructor and will have to give up this job if she opens the new health spa. If she chooses to open the spa, it will cost her $200,000 per year in rent and other operating expenses.a. What are her opportunity costs? Give an example.b. How much would she need to make in revenues to earn positive economicprofits?
Suppose Andrea has a job that pays her $50 000 per year (after taxes). She is considering quitting her job and going to university full time for four years. Tuition fees and books will cost $12 000 per year. Living expenses in either situation will cost $20 000 per year. What is the opportunity cost of Andrea's four-year university degree? $200 000 $128 000 $288 000 $240 000 $248 000
Elliot and Jordy find themselves on a deserted island. The only two activities available are fishing and finding pineapples. In a full day, Elliot can catch 6 fish or find 12 pineapples or some linear combination of the two; in the same time, Jordy can catch 4 fish or find 10 pineapples or some linear combination of the two. What are each individual’s marginal costs of fishing and finding pineapples? (must provide the correct answer for full credit, no additional work is necessary) Who has an absolute advantage in fish production? Who has an absolute advantage in finding pineapples? Briefly explain your reasoning. Who has a comparative advantage in fish production? Who has a comparative advantage in finding pineapples? Briefly explain your reasoning.
You were planning to spend Saturday working at your part-time job, but afriend asks you to go to Karma Beach. What is the opportunity cost of going to thebeach? Now suppose you had been planning to spend the day studying at the library.What is the cost of going to the beach in this case? Explain.
Suppose that your tuition to attend college is $10,000 per year and you spend $4,000 per year on room and board. If you were working full time, you could earn $20,000 per year. What is your opportunity cost of attending college for one year? A) $14,000 B) $24,000 C) $30,000 D) $34,000 can you solve this Q and show me the steps for solving it
Your friend Desmond is thinking about taking a year off of college to work. He argues that his opportunity cost of being in school is the money he is losing by not working and since classes are online he is not getting the full benefits from taking classes, Is he correctly applying the concepts of opportunity cost?O We don't have enough information to answer this question unless we know the marginal costs as well.O No, because he is not considering the low tuition rates of attending PCC and that he will save money by not having to drive to campus.O It depends on if he is taking classes at PCC or at an expensive private school.O Yes, because the opportunity cost is what else he would be doing if he wasn't in class and in this case he would be working if he wasn't in school.
Suppose Liam's Automotive, a repair shop: offers two items: oil changes and tires. With all employees working diligently, the shop can produce these combinations each hour. Type of Product: Production Alternatives A B C D E Oil Changes 0 10 20 30 40 Tires. 80 60 40 35 0 Calculate the opportunity costs of moving from one point to each of the others (This is not a calculation provided in the text: What's the tradeoff?): Provide the answers after showing all work, and explain if theses costs are constant. What would it mean if the shop was actually doing 15 Oil Changes and 35 Tires? What would it mean if the shop was actually doing 35 Oil Changes and 35 tires?
You can spend spring break either at home working for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, the hotel, food, and miscellaneous expenses will total about $700. What’s your opportunity cost of going to Flordia?
Bong-Cha is deciding what to do during the 30-minute break between her college classes. One rule she could follow is, “Choose the activity with the highest value” (A). Another rule she could follow is, “Choose the activity with the lowest opportunity cost” (B). Do you think Bong-Cha’s choice if she follows rule (A) will be the same as the choice she would make if she followed rule (B)? [another way to think about it, “Is rule (A) identical to rule (B) in a sense that they would both induce the same choice?”]. Explain. (8
xt:Bong-Cha is deciding what to do during the 30-minute break between her college classes. One rule she could follow is, "Choose the activity with the highest value" (A). Another rule she could follow is, "Choose the activity with the lowest opportunity cost" (B). Do you think Bong-Cha's choice if she follows rule (A) will be the same as the choice she would make if she followed rule (B)? [another way to think about it, "Is rule (A) identical to rule (B) in a sense that they would both induce the same choice?"].
Q.4. A consultant who earns $ 100 per hour takes 4 hours off work to go to the movies. The out – of- pocket cost for the cab and the movie ticket are $12. What is the opportunity cost (in $) of going to movie? What is the total cost of the movie to the consultant?
Suppose a student has two options for the upcoming year. She can earn $30,000 next year working full-time at Albertson's, or earn $0 returning to college full-time for another year and paying $6,000 in tuition and fees. The opportunity cost of the student returning to college next year is a) $30,000 b) $6,000 c) $36,000 d) $0