Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 2, Problem 14P
To determine
The benefits of specialization to Fran and which good she would specialize in.
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Stephanie 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?
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Part A: Which of the following are examples of specialization? Check all that apply.
A. Akshay understands people, and Eleanor is an expert on sports; therefore, Akshay is a therapist, and Eleanor is a sports commentator.
B. Victor is a fashion designer. He hires a domestic worker to clean his apartment twice a week so that he can concentrate on designing.
C. Felix and Megan each spend half the day tutoring and half the day grading papers. In between tutoring and grading papers, they each must spend an hour driving home from the tutoring center and getting set up for grading papers.
Part B:
Which of the following are necessary conditions for specialization to occur? Check all that apply.
A.Individuals focus only on the tasks they prefer.
B. Everyone must be equally productive at the same task.
C. A system of exchange must be in place.
Part C:
Megan is one of the top race car drivers in the world. Megan has two kids age 12 and 14.
True or…
Technology A
Technology B
Technology C
Output
K
L
K
L
K
L
10
4
5
5
6
6
4
15
3
10
4
7
5
5
20
4
11
5
8
7
8
25) Which technology will the firm choose for Q = 15, if price(capital) : 3 and price (labor): 2?
a) technology A
b) technology B
c) technology C
d)none of them
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