Microeconomics
Microeconomics
2nd Edition
ISBN: 9780073375854
Author: B. Douglas Bernheim, Michael Whinston
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 2P
To determine

Calculate the net benefit.

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You have been invited by friends to fly to Germany for October fest next year. For international travel, you apply for a passport that costs $97 and is valid for 10 years. After you receive your passport, your travel companions decide to cancel the trip because of “insufficient funds.” You decide to also cancel your travel plans because traveling alone is no fun. Is your passport expense a sunk cost or an opportunity cost? Explain your answer.
For each of the following situations involving marginal cost (MC) and marginal benefit (MB), indicate whether it would be best to produce more, fewer, or the current number of units.     a. 3,000 units at which MC = $10 and MB = $13:   (Click to select)   More   Fewer   Current number  .     b. 11 units at which MC = $4 and MB = $3:   (Click to select)   More   Fewer   Current number  .     c. 43,277 units at which MC = $99 and MB = $99:   (Click to select)   More   Fewer   Current number  .     d. 82 units at which MC < MB:   (Click to select)   More   Fewer   Current number  .     e. 5 units at which MB < MC
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