Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 9P
(a)
To determine
The total
(b)
To determine
The total marginal cost of 101 people using the road at rush hour.
(c)
To determine
The toll amount in the rush hour.
(d)
To determine
The toll rate at noon.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The average price of gasoline in your neighborhood is $2.99 per gallon. Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.43 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you? Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial. No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station. Yes, the lower price of gasoline at the rival
Discuss two examples of similar types of wearable technology for humans?
Lane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both people will benefit from it.
If the cost of paving the driveway is $2,000 and Lane proposes that they each pay 50 percent of this cost, then Riley ______ agree to Lane’s proposal because ______.
A. will; repaving the driveway would increase total economic surplus
B. will not; repaving the driveway would lower total economic surplus
C. will; if they split the cost, then Riley’s economic surplus would increase
D. will not; if they split the cost, then Riley’s economic surplus would decrease
Chapter 9 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
Knowledge Booster
Similar questions
- It takes 1 hour to travel from New York to Washington D.C. by air and 8 hours by bus. The airfare is $200 and the busfare is $55. If a traveler wishes to minimize the total cost of making this trip, which mode of transportation should be selected if the traveler’s opportunity cost of time spent in transit is $10 per hour? Justify your answer.arrow_forwardQuestion 30 Link and Zelda each have 12 hours a week they can spend making costumes and accessories for their cosplay group. Link has been doing this for years and can make a costume piece in 2 hours and an accessory item in 1 hour. Zelda is still learning and can make a costume piece in 3 hours and an accessory item in 2 hours. The opportunity cost of 1 costume piece for Link in terms of accessory items (i.e. accessory items per costume piece):arrow_forwardTo produce one more yard of X , you need 1/MPLCx hours of labor. true or falsearrow_forward
- Suppose that before you began your college application process, you were offered a job to work as a floor-trainer at a local climbing gym, accompanied by a yearly salary of $30,000 (after taxes). Assume however that you decided to turn down this offer and instead attend a year of college. The total monetary cost of the year of college, including tuition, fees, and room and board expenses, is $42,000. You likely chose to attend college becausearrow_forwardThe company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $4.5 million. If it would cost $3 million to finish development and make the product, should you go ahead and do so?The most you should pay to complete development is how many dollars?arrow_forwardFinn and Edison are living on an island with no one around to buy anything. They are stranded there unless a help reaches to them. They have some basic stuff for survival but the only issue is of food. They are out of food supplies. The only options on the island are either to catch fish or gather fruits. Finn has done fishing with his father when he was young so he can catch 5 fishes in 30 minutes. Edison on the other hand was finding it hard and can only catch 2 fishes in an hour. They both also wanted to eat fruits and often look around in search of them. Finn can gather 20 apples in an hour while Edison can gather only 10 in an hour . Illustrate PPF for Finn and Edison assuming constant opportunity costs.arrow_forward
- Solve this early but correctly explainarrow_forwardBuying and selling textbooks are two separate decisions made at the margin. Textbooks create value both when they are bought and when they are sold. Think about your decision to buy the textbook for this course. You paid $225 for the book, but you would have been willing to pay $400 to use the book for the semester. Suppose that at the end of the semester you could keep your textbook or sell it back to the bookstore. Once you have completed the course, the book is worth only $90 to you. The bookstore will pay you 50% of the original $225. How much total value have you gained? $arrow_forward____________The opportunity cost of an economic decision is: the best alternative that was sacrificed. the amount of money needed to implement the decision. any land, labor, and capital that are wasted. all options that were lost due to scarcity.arrow_forward
- Concert Opportunity Cost 2 You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?arrow_forwardA college student spends $10 each day eating a burrito. If they had made a burrito each day in their apartment, they could have saved $7 or about $10,000 by the time they graduated. This is an example ofarrow_forwardHow do we solve the following question below?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning