Every Friday night, Gustavo pays $49.99 to eat nothing but crab legs at the all-you-can-eat seafood buffet at the M Resort in Las Vegas. On average, he consumes 34 crab legs each Friday. The average cost of each crab leg to Gustavo is $1.47 The marginal cost of an additional crab leg is $.
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- Karen hires Madison, a college student, to baby sit her daughter, Amelia, when she goes out in the evenings Karen wants Amelia to go to bed by BPM and only eat healthy snacks Amelia, however, can be difficult when Madison tries to get her to go to bed at 8PM and whines until Madison gives her potato chips Amelia usually gives in and lets her stay up late eating unhealthy snacks As a result, Karen finds that it is difficult to get Amelia up in time to get her to daycare the next morning What kind of problem is this?Every Friday night, Gustavo pays $49.99 to eat nothing but crab legs at the all-you-can-eat seafood buffet at the M Resort in Las Vegas. On average, he consumes 34 crab legs each Friday. The average cost of each crab leg to Gustavo is $Kip is trying to decide whether to take a one-day martial arts class at Rex Kwan Do. The fee for the class is $400. Kip will also have to pay his brother Napoleon $150 for that day in return for giving him a ride into town. Instead of taking the class Kip could spend all day on the computer chatting with his girl, LaFawnduh. This gives him a value of $300. On the other hand, he could spend all day working with his Uncle Rico and making sweet moolah. Uncle Rico has promised to pay him $350 on that day if he works with him. What is Kip’s marginal cost of joining Rex Kwan Do? Group of answer choices $650 $550 $400 $300 $350 $150 $900
- Upscale hotels in the United States recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. A survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the Internet and the telephone, to transact business. Assume a company’s budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. Graphically illustrate how a 20 percent decline in the price of business travel would impact this company’s budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. Suppose that, after the price of business travels drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel marginal rate of substitution between electronic media and business…Kip is trying to decide whether to take a one-day martial arts class at Rex Kwan Do. The fee for the class is $400. Kip will also have to pay his brother Napoleon $150 for that day in return for giving him a ride into town. Instead of taking the class, Kip could spend all day on the computer chatting with his girl, LaFawnduh. This gives him a value of $300. On the other hand, he could spend all day working with his Uncle Rico and making sweet moolah. Uncle Rico has promised to pay him $350 on that day if he works with him. What is Kip’s marginal cost of joining Rex Kwan Do? Correct answer: $900 why don't you include 300 also? explanationShen has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Valerie, whom Shen has wanted to date for a long time, asks him to a party. Shen would prefer to go to the party with Valerie and forgo the movie, but he doesn't want to waste the $10 he spent on the movie ticket. From the perspective of an economist, if Shen decides to go to the party with Valerie, he has: Made a choice that was not optimal Incorrectly allowed a sunk cost to influence his decision O Correctly ignored a sunk cost
- Van has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Amy, whom Van has wanted to date for a long time, asks him to a party. Van would prefer to go to the party with Amy and forgo the opera, but he doesn't want to waste the $100 he spent on the opera ticket. From the perspective of an economist, if Van decides to go to the party with Amy, what has he just done? 1. Incorrectly allowed a sunk cost to influence his decision 2. Made a choice that was not optimal 3 Correctly ignored a sunk cost Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Suppose the National Football League (NFL) wants to make Super Bowl tickets affordable for more football fans. The league therefore sets the price of a Super Bowl ticket below what is generally considered a fair market price. Suppose the price of a ticket for a regular seat at the Super Bowl is set at just $500. People who have tickets, however, can turn resell them online for $2,500 each, or more. If there are no transaction costs associated with online sales of Super Bowl tickets, the true cost to a fan of attending the Super Bowl is: O at least $2,500. O the monetary price paid to obtain the ticket. at most $500. $2,000 less than the opportunity cost of a ticket.Suppose the National Football League (NFL) wants to make Super Bowl tickets affordable for more football fans. The league therefore sets the price of a Super Bowl ticket below what is generally considered a fair market price. Suppose the price of a ticket for a regular seat at the Super Bowl is set at just $500. People who have tickets, however, can turn resell them online for $2,500 each, or more. If there are no transaction costs associated with online sales of Super Bowl tickets, the true cost to a fan of attending the Super Bowl is:
- Suppose that Ciana is deciding whether or not to buy a pair of sneakers that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sneakers she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $124 for the sneakers: Store Travel Time Each Way Price of a Sneakers (Minutes) (Dollars per sneakers) Local Shoe Store 15 124 Different Neighborhood in Town 30 103 Rural Outlet 60 70 Ciana earns an hourly wage of $30 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her $30 in lost income. Assume that Ciana’s travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question…Kamryn is deciding between three potential activities on Saturday evening: 1) Staying at home and watching her favorite television show, an activity that she values at $18 and that entails no out-of- pocket costs. 2) Going to the movies with her sister to see the latest blockbuster action film, an activity she values at $30 and that entails $15 in out-of-pocket costs. 3) Going out to dinner with her best friend, an activity she values at $40 and that entails $23 in out-of-pocket costs. a. Which activity should Kamryn choose? b. What is Kamryn's opportunity cost of going to the movies? Instructions: If you are entering a negative number, be sure to include a negative sign (-). $ Staying at home and watching her favorite show O Going out to dinner with her best friend Going to the movies with her sister $ c. Relative to her next best alternative, what is Kamryn's economic surplus from going to the movies? Instructions: If you are entering a negative number, be sure to include a negative…You must allocate the 70,000 seats in Reliant Stadium (in Houston) among Texan (Houston) and Cowboy (Dallas) fans for an upcoming game between the two footfall teams. You can set different prices for seats in the Dallas and Houston sections of the stadium. Suppose you can obtain $40/ticket from Houston fans irrespective of the number of seats you allocate to Houston fans. You must drop price in order to sell more tickets to Dallas fans, however. Let Q be the number of tickets you allocate to Dallas fans. Assume that the maximum price you can charge for these tickets is given by the following inverse demand function P= 80 500 (a) Express the total revenue (on all 70,000 seats) from ticket sales as a function of Q; (b) Derive the first-order condition of the revenue-maximizing problem (it's a function about Q); (c) What is the optimal number of seats allocated to Dallas fans?