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Question 1 Part A Suppose the following data apply to you: Hours of Benefit of Cost to Value of other studying per day studying your body activities given up 3 300 50 100 4 400 70 110 5 490 100 125 6 570 140 145 7 640 190 171 82 700 250 205 9 750 320 247 10 790 400 299 11 820 490 363 12 840 590 441 a. Explain how you make your decision (by thinking on the margin) on the number of hours spent on studying per day. And how many hours will you spend on studying. What is the marginal cost of your choice? What is the marginal benefit? Part B Suppose you can spend your time next year to do one business project, and only one business project, and you can choose only from Projects A, B, and C. The relevant information of these projects are as follows. Project Revenue Expenditure A 500 320 B 450 340 с 400 360 b. c. d. Calculate the following for each project: i) explicit cost, ii) implicit cost, iii) accounting profit, iv) economic profit. Which project would you choose? Explain your decision, especially the decision rule based on which you made your decision. Explain your decisions above using one of the ten principles you have learned in this course.

Question 1 Part A Suppose the following data apply to you: Hours of Benefit of Cost to Value of other studying per day studying your body activities given up 3 300 50 100 4 400 70 110 5 490 100 125 6 570 140 145 7 640 190 171 82 700 250 205 9 750 320 247 10 790 400 299 11 820 490 363 12 840 590 441 a. Explain how you make your decision (by thinking on the margin) on the number of hours spent on studying per day. And how many hours will you spend on studying. What is the marginal cost of your choice? What is the marginal benefit? Part B Suppose you can spend your time next year to do one business project, and only one business project, and you can choose only from Projects A, B, and C. The relevant information of these projects are as follows. Project Revenue Expenditure A 500 320 B 450 340 с 400 360 b. c. d. Calculate the following for each project: i) explicit cost, ii) implicit cost, iii) accounting profit, iv) economic profit. Which project would you choose? Explain your decision, especially the decision rule based on which you made your decision. Explain your decisions above using one of the ten principles you have learned in this course.

Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
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Question 1 Part A Suppose the following data apply to you: Hours of Benefit of Cost to Value of other studying per day studying your body activities given up 3 300 50 100 4 400 70 110 5 490 100 125 6 570 140 145 7 640 190 171 82 700 250 205 9 750 320 247 10 790 400 299 11 820 490 363 12 840 590 441 a. Explain how you make your decision (by thinking on the margin) on the number of hours spent on studying per day. And how many hours will you spend on studying. What is the marginal cost of your choice? What is the marginal benefit? Part B Suppose you can spend your time next year to do one business project, and only one business project, and you can choose only from Projects A, B, and C. The relevant
Transcribed Image Text:Question 1 Part A Suppose the following data apply to you: Hours of Benefit of Cost to Value of other studying per day studying your body activities given up 3 300 50 100 4 400 70 110 5 490 100 125 6 570 140 145 7 640 190 171 82 700 250 205 9 750 320 247 10 790 400 299 11 820 490 363 12 840 590 441 a. Explain how you make your decision (by thinking on the margin) on the number of hours spent on studying per day. And how many hours will you spend on studying. What is the marginal cost of your choice? What is the marginal benefit? Part B Suppose you can spend your time next year to do one business project, and only one business project, and you can choose only from Projects A, B, and C. The relevant
information of these projects are as follows. Project Revenue Expenditure A 500 320 B 450 340 с 400 360 b. c. d. Calculate the following for each project: i) explicit cost, ii) implicit cost, iii) accounting profit, iv) economic profit. Which project would you choose? Explain your decision, especially the decision rule based on which you made your decision. Explain your decisions above using one of the ten principles you have learned in this course.
Transcribed Image Text:information of these projects are as follows. Project Revenue Expenditure A 500 320 B 450 340 с 400 360 b. c. d. Calculate the following for each project: i) explicit cost, ii) implicit cost, iii) accounting profit, iv) economic profit. Which project would you choose? Explain your decision, especially the decision rule based on which you made your decision. Explain your decisions above using one of the ten principles you have learned in this course.
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