Macroeconomics
Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
Question
Book Icon
Chapter 1, Problem 9QE
To determine

Marginal analysis.

Blurred answer
Students have asked these similar questions
You are choosing between buying a home or continuing to rent.You value the home at $1,000,000 (one million dollars) over the course of your life.The home will cost $600,000, which includes the $400,000 price tag for the house itself,$100,000 in mortgage interest payments, and $100,000 in repair costs.You value the apartment you'd live in at $800,000 over the course of your life, and it will cost$500,000 in rentWhat is the economic surplus of buying the house? Don't include commas or dollar signs inyour answer.
Suppose you have a choice of working full-time during the summer or going full-time to summer school. Summer tuition and books are $2,200. If you worked, you could make $7,000. Your rent is $1,000 for the summer, regardless of your choice. What is the opportunity of your choice of going to summer school?
Buying 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 $500 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 $50 to you. The bookstore will pay you 50% of the original $225. How much total value have you gained? $
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Microeconomics
    Economics
    ISBN:9781337617406
    Author:Roger A. Arnold
    Publisher:Cengage Learning
Text book image
Microeconomics
Economics
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Cengage Learning