Refer to a table above that shows the total benefit and total cost for units of courses Matthew is taking.. Correctly match each term with its answer. Marginal benefit from 3 units to 6 units Marginal cost from 3 units to 6 units If Matthew is currently taking 6 units, The units he ends up taking are [Choose ] [Choose ] [Choose ] [Choose ] O ( ( <> (
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- Suppose you work for United Airlines. You have been assigned to conduct a cost-benefit analysis for United Airlines on the question of whether or not United should offer service from Lynchburg Regional Airport to Washington Dulles International Airport (DC-Northern Virginia area). Stopping short of doing any actual calculations, discuss what would be involved in doing this analysis for United. (Even though you don’t have to do the actual calculations, you should be specific as to how you would do the calculations and obtain the necessary inputs.)Mm.8. Subject:- economicLesson 8 - Costs Question 11
- Jane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a minibus. Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha. There are 1000 people who will pay $400 a year each for the commuter service; $280 from each person goes for gas, maintenance, insurance, and depreciation. She estimates that her entrepreneurial skills would have typically yielded a normal profit of $5,000 in another business. (a) Complete the following questions: (1) What are Jane’s total revenues? (2) What are Jane’s explicit costs? (3) What is her accounting profit? (b) List the important implicit costs that Jane has not included. (c) What is Jane’s pure economic profit (loss)?Determining opportunity cost Suppose that Ciana is deciding whether or not to buy a pair of sandals that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sandals she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $110 for the sandals: Store Travel Time Each Way Price of a Sandals (Minutes) (Dollars per sandals) Local Shoe Store 15 110 Different Neighborhood in Town 30 97 Rural Outlet 60 73 Ciana earns an hourly wage of $56 at her job. In order to purchase her sandals she will have to take time off work, so each hour away from her job costs her $56 in lost income. Assume that Ciana’s travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume…Vicky needs a new bathroom. She finds Dmitri, a contractor, through an ad he posted in the local newspaper. Dmitri paid $60 to post the ad in the newspaper. After Vicky and Dmitri agree on the price for the new bathroom, they sign a contract, which Vicky has a law firm write up for $95, stating that Dmitri will install Vicky's new bathroom for $2,200. The transaction costs associated with this exchange are:
- Decision Making by Individuals and Firms — End of Chapter Problem 10. Assume De Beers is the sole producer of diamonds. When it wants to sell more diamonds, it must lower its price in order to induce shoppers to buy more. Furthermore, each additional diamond that is produced costs more than the previous one due to the difficulty of mining for diamonds. De Beers’s total benefit schedule is given in the accompanying table, along with its total cost schedule. Quantity of diamonds Total benefit Total cost 0 $0 $0 1 1,100 50 2 1,900 100 3 2,700 200 4 3,400 400 5 4,000 800 6 4,500 1,500 7 4,900 2,500 8 5,200 3,800 a. What is the optimal quantity of diamonds to produce? Optimal output: diamonds b. Calculate the total profit to De Beers from producing each quantity of diamonds. Which quantity gives De Beers the highest total profit? Profit-maximizing output: diamondsStore Travel Time Each Way Price of a Suit (Minutes) (Dollars per suit) Local Department Store 15 100 Across Town 30 86 Neighboring City 60 63 Juanita makes $56 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $56 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Store Opportunity Cost of Time Price of a Suit Total Cost (Dollars) (Dollars per suit) (Dollars) Local Department Store 100 Across Town 86 Neighboring City 63Pick 1 current economic topic below and You will research and find an article that covers the topic you have chosen. You can use an article online or offline from any reputable source. You will write up a review of the article and integrate course concepts into your review. Please make sure you summarize the article. Complete this essay in a Microsoft Word document in APA format and Works Cited page. Please note that a minimum of 700 words for the essay is required. Business costs: · Implicit and explicit costs · Accounting profits · Economic profits · Productivity · Total costs · Marginal costs · …
- Fig 2.1 illustrates the law of diminishing returns in seeking the optimum system (or component) performance and hence the need to balance the performance against the cost. Give examples of two pairs of characteristics other than performance versus cost where optimizing one frequently competes with the other, and briefly explain why they do.Don Juan Perez runs a seafood restaurant. His total income last year was $150,000. The rent was US$48,000 per year. His labour costs were $42,000 and materials, food and other variable costs were $20,000. Don Juan Perez was going to write a cookbook where he would have earned $40,000 per year, or as a chef de cuisine in another restaurant, where he would have earned $35,000. The economic utility of Don Juan Perez is:(a) 0 (zero) per yearb) 5,000 dollars a yearc) -$35,000 per yeard) $40,000 per yearRaad wants to sell his workout DVDS in the Middle East, Asian, and Latin African countries. will help him reach vendors abroad, without the expense of traveling to meet them face-to-face. A website and other technological advances B. Partnering with a large U.S recording studio C. The SBA (Small Business Administration) D. An incubator facility