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

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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 20CTQ: During the Second World War, Germanys factories were decimated. It also suffered many human...

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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?
Need help with this homework thinking question (about opportunity costs) Sigmund Freud, in his 1930 essay Civilization and Its Discontents, argues that thesublimation of sexual desire leads to the mental energy required for advances in civiliza-tion: science, art, politics, etc. He writes,“Sublimation of instinct [such as sexual instinct] is an especially conspicu-ous feature of cultural development; it is what makes it possible for higherpsychical activities, scientific, artistic, or ideological, to play such an impor-tant part in civilized life... it is impossible to overlook the extent to whichcivilization is built up upon a renunciation of instinct...” How would an economist phrase Freud’s argument, in terms of opportunity costs? Might this explain the development of monogamous marriage as an institution?
3. During the summer you have made the decision to attend summer school, which preve:ts you from working at your usual summer job in which you normally earn S5,000 for th summer. Your tuition cost is S3,000 and books and supplies cost S1,300. In terms of dollars, the opportunity cost of attending summer school is: A. SI0,300. B. S5,000. C. S4,300. D. S3,000.
Cape Town and Durban were first developed in the 17th and 18th centuries as trading posts on theshipping route between Western Europe and Asia. During the 19th century, this role changed withthe discovery of diamonds and gold in the interior. The port cities developed from being stop-overand service points providing shipping services, to being ports through which commodities weretraded.”The change in the that occurred in the Durban and Cape Town ports during the 19th century is best explained by…a) A movement along the production possibilities frontier.b) A movement towards the production possibilities frontierc) An outward movement of the production possibilities frontierd) An inward movement of the production possibilities frontier
Below is the production possibilities table for consumer goods (washing machine) andcapital goods (tractor): Type of Production Production Possibilities A B C D E Washing Machine 0 4 8 12 16 Tractor 60 54 42 24 0 a. Show these data graphically.b. If the economy is at point B, what is the cost of one more washing machine?What is the cost of one more tractor?c. Explain how the production possibilities frontier reflects the law ofincreasing opportunity costs.
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.
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?"].
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
Consider Angela who currently works as a data scientist with machine learning expertise. Recently,she was offered a job by Bruno’s firm. The job offer includes a higher salary than her current job andthe freedom to choose the number of work hours per day. But Angela is also an amateur musicianwho desperately dreams of becoming a professional one day. This motivates her to practice musicas much as possible, which makes her value her free time very much.Using the model of individual choice, and assuming Angela accepts the job offer, graphicallyillustrate the impact on her choice of free time and consumption. Fully label your diagram. Notethat there are no actual numbers given in this question: you may make them up or simply useappropriate notations. Explain specifically its impact on the following:• Angela’s choice of free time• Angela’s consumption level• Angela’s utility level
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?
Below is a table of production possibilities for a company that produces soft drink bottles and juice bottles (in thousands of units per week): Production alternatives production type A B C D E F Set of 8 soft drink bottles 0 4 10 15 19 22 12 juice box 58 56 48 32 16 0 Plot this data on a graph. What specific assumptions are represented by this production possibilities curve? If a firm is at point C, what is the opportunity cost of an additional set of soft drinks? From an extra juice box? If the company characterized in this table produced 7 sets of 8 bottles of soda and 40 cases of 12 juices, what could be concluded about the use of available resources? Is production currently possible at a point outside the production possibilities curve? Explain your answer.
why is the market for recycled aluminium good and the market for plastic bad in the US? Depict this with a firm input choice model. I understand that recycled plastic decreases in qualiy everytime it is recycled while aluminium does not and can be recylced without the decrease in quality, but I dont know how to depict this graphically