Jenny takes a day off from work today in order to go Motor Vehicles and take her driver's license written test. The test fee is $75 and she pays $20 for parking. After taking the test she can also walk her neighbor's dog and receive $25 for it. Jenny earns a wage of $30 per hour per 9-hour day at her job. What is Jenny's opportunity cost of taking the day off? $270 $95 $25
Q: What term do economists use to describe the tendency for people to prefer certain outcomes over…
A: Risk aversion in economics means the tendency of individuals or investors to prefer certain outcomes…
Q: A consumer of two goods has utility u(x1, x2) 12. She can purchase each good i = 1, 2 at a price of…
A: The utility function refers to all those commodity bundles that derive the same amount of utility…
Q: 4) A manufacturing firm produces power drills that it sells at a market price of $100/drill and…
A: ***Since sub-parts (b) and (d) are the same, subparts (a), (b), and (c) are answered.The market…
Q: As you know, when Greece joined the euro area in 2001, its long-term interest rates converged with…
A: Interest rate refers to the amount of money that charged or given on a proportion of money that is…
Q: Why in the long run the rate of return on investments reflects the riskiness of those investments?
A: The long run refers to a period of time in which all factors of production can be adjusted, allowing…
Q: A B с Player 1: 1 Player 2: 2 Player 1: 2 Player 2: 1 Player 1: 3: Player 2: 1 Player 1: 2 Player 2:…
A: It can be described as the representation of the outcomes of the strategic interaction between two…
Q: In a market, the private supply curve is given by P=2+3.10 and the private demand curve is given by…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: Consider the consumption function: C = 120+ 0.8Yd where Yd is disposable income. a) Write down…
A: In this case, the consumption function is given as *, where YD is the disposable income.
Q: a. If investment is x, draw the aggregate expenditure function (which depicts total consumption plus…
A: Consumption functionIt is closed economy with no government expenditure.Investment level is .
Q: 11 Consider the equation y-A₂+ B₁x + ₂x² + E(x) = 0, where the explanatory variable x has a standard…
A: The OLS (Ordinary Least Squares) estimator is a commonly used method to estimate the parameters in a…
Q: There are two countries Home Home has 1,200 units of labor available. It can produce two goods,…
A: Relative Demand signifies the ratio of the demand of one good in comparison with the demand of…
Q: Let's denote a lottery as (X₁, P1; X2, P2; ... ; Xm, Pm), where Xi and Pi indicate the reward…
A: Expected Utility is a concept in decision theory that combines both the probabilities and the…
Q: The agricultural market whose demand and supply schedules are is initially in long-run…
A: Economic concepts and facts are investigated using mathematical approaches and frameworks in…
Q: Monopoly 1. Use the graph below to answer these questions: a) What type of market structure finds…
A: A market structure called monopoly is characterized by a single seller who has total control over…
Q: ) Is it possible for your company to operate at a loss in the short run? 2) Assess your company’s…
A: Market dynamics can be defined as the forces and factors that affect the behavior and…
Q: Assumptions for all the questions: Private consumption is a function of disposable income and…
A: ***Since the student has asked for a specific part of the subparts to be solved, hence, the expert…
Q: c) Suppose a firm wishes to minimize cost C C=rK+wL subject to producing a target level of output Y.…
A: In a market economy, the production function demonstrates the causal relationship between supply…
Q: a. What is the EVPI for Hugh Liedtke regarding Texaco's reaction to a counteroffer of $5 billion'7…
A: The Texaco-Pennzoil example reproduces in Figure 1. a. What is the EVPI for Hugh Liedtke regarding…
Q: Present a chart (s) showing currency in circulation, M1 and M2. What factors account for the recent…
A: M1 includes the most liquid forms of money, which are readily accessible for transactions such as…
Q: Given: 8.5K 1 2 3 4 ? solve using the economic tables, use a 10% interest rate. show all steps
A: The interest rate =10%At time 0, cash flow is 8.5KSo the present value is 8500We need to find future…
Q: For each quantity of tutoring sessions he could give, fill in the Total Revenue column in the…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: Prior to the expansion, the Fountainbleau profits were $60m and the Eden Roc's profits were $25m.…
A: The question analyses decision-making and negotiation. It involves the profit-related concerns of…
Q: Consider the discussion on the various Fintech companies covered. Compare the differences in…
A: Traditional banks, often referred to as brick-and-mortar banks, have long been the cornerstone of…
Q: Explain the expenditure measure of GDP
A: The expenditure measure of GDP is one of the three ways to calculate GDP, the others being the…
Q: Hale College predicts that in 18 years it will take $200,000 to attend the college for years. Emma…
A: Here,Future value -= $ 200,000Time = 18 yearsInterest rate r = 9% compounded monthly
Q: A consumer is observed making two choices. First, he faces prices p = (1,3) with wealth w = 8 but is…
A: The utility function refers to all those commodity bundles that derive the same amount of utility…
Q: Suppose a consumer has a utility function given by U(X,Y) = MIN(X, 2Y). The consumer has $90 to…
A: U=MIN(X, 2Y)M=$90Py=1
Q: A consumer has utility (₁,₂)=₁+122. Suppose that, because of a shortage of good 1, the government…
A:
Q: appraisal the political, economic, and social risks of Malaysia with respect to oil and gas…
A: The Asian economy distinguishes out due to its rapid progress, intellectual breakthroughs, and…
Q: In the past, national governments influenced the pace of globalization through agreements to lower…
A: The rapid change caused by the pandemic and the Russia/Ukraine war is outpacing the capability of…
Q: What is consumer surplus? Explain in words and by drawing supply and demand curves. What is producer…
A: It can be described as a number of products or any type of commodity that are supplied more than the…
Q: The demand function for Wally Winka's Neverending Lollipops is given by p = (8 - x)In(x + 6) where p…
A: To compute the price (p) when x = 4, we substitute the value of x into the given demand function:p =…
Q: Complete the table by calculating physical capital per worker as well as labor productivity. Hint:…
A: Physical capital can be defined as the capital required to produce goods and services. This may…
Q: ges and disadvantages of exporting computers from the United States to Western Europe. There are…
A: It can be described as the legal procedure of giving permission by the property right holder to any…
Q: Diana loves to buy shoes. However, after buying 10 new pairs of shoes she realizes that the tenth…
A: Marginal Utility : It explains the change in the total utility as consumer consumes an additional…
Q: QUESTION 2 Capitalized cost is an application of perpetuity. It is the sum of the first cost and the…
A: Initial cost = P300000Replacement required at every 15 yearsAnnual maintenance cost = P5000Salvage…
Q: Listen to thisLinks to an external site. podcast about the market for human organs.…
A: Market equilibrium quantity and price is determined where market demand and the market supply is in…
Q: Consider a consumption function given by C = 0.8Y + 2000
A: C=a+bYdConsumption functionC=2000+0.8YdIt is closed economy with no government expenditureInvestment…
Q: Use the information in the chart to calculate the real exchange rate between the U.S. dollar and the…
A: The real exchange rate means the relative value of one country's currency compared to another,…
Q: If a bank has $10 million in checking account deposits, how much lending capacity (authority) it can…
A: The required reserve ratio refers to the ratio of the money that a bank has to hold in reserve to…
Q: Even in the US, approximately, what percent of medical care is purchased through insurance,…
A: Even in the US, approximately, what percent of medical care is purchased through insurance,…
Q: Imagine that, in the United States, two technology corporations decide to merge and generate a large…
A: It can be defined as the level to which a market is dominated by a few numbers of firms or players…
Q: List and explain the main factors considered in international investing, and suggest ways or…
A: International investing in economics means investing capital in assets and securities outside of…
Q: What is the variance of portfolio returns?
A:
Q: Discuss economies of scale and how average cost changes as output increases. What pricing strategy…
A: Economies of scale.Average cost changes as output increases.Pricing strategy for a firm in economies…
Q: Boxer Production, Inc., is in the process of considering a flexible manufacturing system that will…
A: Introduction:Capital investment decisions are also known as capital budgeting decisions as these are…
Q: Refer to the Figure below. In Panel (b), the increase in total cost of producing the original…
A: Environmental regulation refers to rules and policies implemented by governmental authorities to…
Q: Country Namibia South Africa Botswana Zambia Brazil Per Capita Income (2017) $10,380 12,870 15,510…
A: Average per capita income means the total income generated within a country divided by its…
Q: Q1. Assume that the demand curve D(p) given below is the market demand for widgets: Q=D(p)=806−10p,…
A: To find the equilibrium price and quantity, we need to set the quantity demanded equal to the…
Q: Explain why we need to compute nominal GDP, REAL GDP, AND PER CAPITA GDP
A: Gross Domestic Product, is a measure of the total value of all final goods and services produced…
Step by step
Solved in 3 steps
- What is Maries opportunity cost of purchasing a pie?Jeff can opt to join singing classes or work as a part time job in that one hour. The job would help him make $500 per month Calculate the opportunity cost of Jeff opting for singing classesYou have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon? Select one: O a. $57 O b. $12 ○ c. $22 ○ d. $8
- 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?Arlene quits her $125,000-a-year job to take care of her ailing parents. What is the opportunity cost of her decision? A. the value she attributes to the satisfaction she receives from taking care of her parents B. zero, since she will no longer be earning a salary C. It depends on the "going rate" for home-care providers. D. at least $125,000Consider your decision about whether to go skiing for the weekend. Suppose transportation, lift tickets, and accommodation for the weekend costs $300. Suppose also that restaurant food for the weekend will cost $75. Finally, suppose you have a weekend job that you will have to miss to go skiing, which pays you $120. Calculatethe opportunity cost of going skiing? Do you need any other information about computing the opportunity cost?
- 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) $0Suppose 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 000Stephanie has $200 left over this week, and she wants to contribute to a charitable cause. She can either feed 20 homeless persons two meals in a day or she can provide shelter for 10 homeless persons one night. What is the opportunity cost of Stephanie using all her money to shelter homeless people? 2. Mike’s Auto Art is a company that applies pinstripes to vehicles. Mike's cost for a basic 1-color pinstriping job is $35, and he charges $95 for this service. For a total price of $175, Mike will apply a fancier 3-color pinstripe application to an automobile, a service that adds an additional $40 to the total cost of the package. What is the marginal cost of moving up from the 1-color application to the 3-color application? 3. Mexico can cultivate either 120 bushels of Oranges per acre or 200 bushels of Bananas per acre. What is the opportunity cost of cultivating 1 bushel of Oranges per acre?
- casey recently inherited $100,000 from her grandma rather than invest the money in a mututral fund that earns 5% she quit her job of translator which paid $60,000 and started casey's coffee crush which is recently cost $20,000 for this year. the equipments and machines cost $60,000. staffs help and advertising cost another $ 40,000 in her first year her revenue was $150,000 what is the implicit opportunity cost of casey's coffee crush?You are a University student who must live off-campus in the second year. There are two types of one-bedroom apartment where you prefer to live because it is near the campus. One rents for $400 per month and the other $360. According to the University Students’ Housing Bureau 80 percent of apartments in the area consists of the $400 type while the remaining 20 percent are of the $360 type. You need to visit the apartments to discover the rent. Suppose the first apartment you visit cost $400 and the opportunity cost of your visit is $6 per visit. 1. If you are risk neutral person should you visit another apartment or rent the one you have found.2. Suppose you visit another apartment and find out that it rents for $400, should you visit another apartment?The table below shows Tim's and Al's willingnesses-to-pay (marginal benefit) for each firefighter hired by their community. For example, Tim would pay $200 for 1 firefighter, and an additional $160 for a 2nd firefighter. Number ofFirefighters Tim'sWillingness to Pay Al'sWillingness to Pay 1 $200 $120 2 160 40 3 100 20 The (marginal) cost of hiring each firefighter is $120. If Tim and Al are the only two people in the society, what is the socially efficient number of firefighters?Hint: What is the total societal willingness-to-pay (marginal benefit) for each firefighter? Question 6Answer a. 1 b. 2 c. 3 d. None of the answers are correct e. Cannot be determined from the given information