Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
Question
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Chapter 1, Problem 1.2.13PA

(a):

To determine

Explain which group of students will likely to get the tickets.

(b):

To determine

Opportunity cost of distributing tickets.

(c):

To determine

Efficient method of distributing tickets.

(d):

To determine

Equitable way of distributing tickets.

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Using an economic point of view, please describe and explain the following two situations: Describe how you might determine the economically efficient number of exit doors on an airline, or the economically efficient number of safety marshals assigned to an airline flight. In 1938, the FDA was given the authority to require drug manufacturers to test and prove the safety of their product before distribution. What are some opportunity costs of this decision?
A popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can’t make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?
What is an opportunity cost? Give an example from class or make up your own.
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