Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800. He discovers that needs an additional repair, which will cost $400. He can sell the boat as it is now for $300. What should he do? Select one: O a. He should take the $300. O b. He should never sell something for less than its cost. O c. He should complete the repairs and sell the boat. Od. It doesn't matter which action he takes; the outcome is the same either way.

Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800. He discovers that needs an additional repair, which will cost $400. He can sell the boat as it is now for $300. What should he do? Select one: O a. He should take the $300. O b. He should never sell something for less than its cost. O c. He should complete the repairs and sell the boat. Od. It doesn't matter which action he takes; the outcome is the same either way.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.2IP: Concert Opportunity Cost 2 You were able to purchase two tickets to an upcoming concert for $100...

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Sven runs a daycare for some of the neighborhood children, where he earns $300/day inrevenue. He runs the daycare out of his home, for which the mortgage costs $3,000 per month($100 per day). Each day, Sven spends $50 on food, diapers, and other supplies. He also hassome toys and playground equipment that originally cost $500, but which he wouldn’t getany money for reselling today. Sven looks after all the children himself, so he doesn’t pay anymoney in labor costs. If he weren’t busy with the daycare, he could earn $120 per day as aprivate nanny. What is Sven’s daily economic profit from the daycare? (Select one from below) (a) $300: Economic profit is equal to revenue.(b) $180: That is his revenue minus opportunity cost.(c) $150: That is his revenue minus input cost.(d) $130: That is his revenue minus variable cost.(e) $50: That is his revenue minus accounting cost.(f) $30: That is his revenue minus economic cost.(g) $0: In the long run, all firms must make zero profits.(h) –$200:…
Concert Opportunity Cost 2 You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?
Alda is willing to pay $2,000 to visit her favoritecousin over spring break. A month ago, she bookeda trip costing $1,200. Spring break has arrived, butAlda needs one day to finish an important paperbefore she goes. Alda could cancel her trip and geta refund of $800. Or, she could pay an additional$1,000 (on top of the $1,200 she already paid) torebook the trip for two days later. Explain whatAlda should do.
Bill is a professional photographer. His camera is broken, and he needs a new one within the next hour, orhe will miss an important deadline. Lisa is a highschool student who doesn’t have a camera but wantsto get one to take pictures at her prom next month.Who do you think would have a higher willingnessto pay for a particular camera today? Why?
Ray bought two WVU football tickets for $100 each. However, he has won a free vacation and won’t be able to attend the game. A ticket scalper offers him $40 for each ticket before he leaves town. Calculate the opportunity cost. $0 $80 $200 $100 $120
Can you give an example of cost-savings?
Conner runs two kinds of rafting trips. If he spends all day on a wild whitewater rafting, he can do 3 trips, or he can do 4 trips of a mellow wildlife rafting. If he does some of each, however, he can do more total trips: 2 whitewater trips and 3 wildlife trips. Conner’s time is valued at $20/hour. Finding the value for the economies of scope of Conner’s rafting experience. What can you say about his economies of scope? i.e., does Conner reduce the average cost by making some of each trip or by making each trip separately? Show your work.
Chandra received a gift certificate that covers threesalsa dance lessons. After the first lesson, Chandradecided that she doesn’t like salsa, yet she stillplans to go the next lesson because it doesn’t costher anything. Evaluate Chandra’s logic.
YOU HAVE TO DRAW A DIAGRAM TO PROVE THESE ANSWERS IT CANT ONLY BE WRITTEN .YOU HAVE TO INCLUDE DIAGRAMS ALSO
You produce shoes (Q) with labor (L) and capital (K). The production process is as so: Q = 400L - 20L2 + 600K – 10K2 The cost of labor is $20 and the cost of capital is $30. You have a budget of $550. How many units of capital(K) should you rent/buy? Enter as a value.
Describe the process of Valuation of Benefits and Costs?
Would the opportunity cost be a benefit to UPS shipping or a benefit to UPS international shipping for this example? “To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. Smaller or lighter packages were more expensive to ship with UPS, but USPS provided a low-cost alternative. UPS ships more than 220 internationally, whereas; USPS is strict about shipping to specific international destinations. I have chosen USPS over UPS; by doing this, orders were delivered on time and without damage by the United States Postal Service.”