Sheena quit her job teaching art at the high school and is now an artist who operates an art studio where she produces and sells art. She earned a salary of $50,673 as a teacher. She took out $100,000 in savings that she had been earning 4% interest on. Her rent for the studio is $20,000, she spends $40,000 on supplies and $8,754 on utilities. Whether she is a teacher or an artist she spends $2,000 on clothing each year. What is her total cost (both explicit costs and opportunity cost) of being an artist? Your Answer: Answer units

What is the most significant difference between Microeconomic and Industrial Organization analysis?

Is this example also an example of economically rational decision making? “In 2019, I started my small business by selling prints of my photographs. Now it’s temporarily closed. During this time I had the option of shipping my prints through USPS or UPS. I decided to ship my prints through USPS instead of UPS since it was a bit expensive at the time. My prints that were shipped out from USPS arrived in time and came in good condition. The opportunity cost is the cost of UPS shipping.”

True or False The average total cost cannot equal marginal cost.

Describe the unit-of-production method?

Compare and contrast economies of scale and economies of scope. Give an example of each from your own experience or research.