EBK PRINCIPLES OF MICROECONOMICS
12th Edition
ISBN: 9780134069180
Author: Oster
Publisher: YUZU
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Question
Chapter 2, Problem 1.3P
To determine
Is the efficiency statement right or wrong.
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The accompanying table shows the relationship between the
speed of a computer's CPU and its benefits and costs. Assume
that all other features of the computer are the same (that is,
CPU speed is the only source of variation), and only the CPU
speeds listed in the table are available for purchase.
CPU
Total
Marginal
Total
Marginal
GHz
Benefit
Benefit
Cost
Costs
2.0
$1,000
$900
2.5
$1,400
$ 100
3.0
$300
$1,200
3.5
$1,900
$ 1,500
4.0
$2,000
$ 400
The marginal cost of upgrading from a 2.5GHz to 3.0GHz
computer is
O $400.
O $300.
$200.
O $100.
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other
features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for
purchase.
CPU
Total
Marginal Total Marginal
GHz
Benefit
Benefit
Cost
Costs
2.0
$1,000
$900
2.5
$1,400
$100
$1,200
$1,500
3.0
$300
3.5
$1,900
4.0
$2,000
$400
The total benefit of a 3.0GHZ computer is:
It was not quite what the planners had in mind when Sweden and Denmark opened their expensive bridge across the Oresund strait in July. After an early boost from summer tourism, car crossings have fallen sharply, while trains now connecting Copenhagen, the Danish capital, and Malmo, Sweden’s third city, are struggling to run on time. Many people think the costs of using the bridge are simply too high. And, from the point of view of Scandinavian solidarity, the traffic is embarrassingly one-sided: far more Swedes are going to Denmark than vice versa. So last week the authorities decided to knock almost 50% off the price of a one-way crossing for the last three months of this year. The two governments, which paid nearly $2 billion for the 16km (10-mile) state-owned bridge-cumtunnel, reckoned that, above all, it would strengthen economic ties across the strait and create, within a few years, one of the fastest-growing and richest regions in Europe. But ministers on both sides of the…
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EBK PRINCIPLES OF MICROECONOMICS
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