Section B- SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. (3 points each) 1) Assume that an individual with an opportunity cost of time of $20 per hour has to choose between renting four apartments. The rents of the four apartments and the individual's monthly commuting time to work are shown in the following table. Calculate the direct cost, indirect cost, and total cost, that the individual will incur if she rents any of these apartments. Also, determine the apartment that is optimum for the individual. Monthly Commuting Time (hours) Rent ($) 2,800 2,200 1,500 1,400 Apartment 1 60 90 3. 120 150
Section B- SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. (3 points each) 1) Assume that an individual with an opportunity cost of time of $20 per hour has to choose between renting four apartments. The rents of the four apartments and the individual's monthly commuting time to work are shown in the following table. Calculate the direct cost, indirect cost, and total cost, that the individual will incur if she rents any of these apartments. Also, determine the apartment that is optimum for the individual. Monthly Commuting Time (hours) Rent ($) 2,800 2,200 1,500 1,400 Apartment 1 60 90 3. 120 150
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 4SCQ: Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the...
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