Microeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859484
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Question
Chapter 2, Problem 4E
To determine
Cost of opportunity.
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your tuition is $27,000 this semester, your books cost $
2,500, you can only work 20 rather than 50 hours per
week during the 15 weeks you are taking classes and
you make $10 per hour, and your room and board is $
8,500 this semester (same as if not attending college),
then your opportunity cost attending college this
semester isSelect one: a. $34,000. b. $32,500. c. $
42,500. d. $41,000
As the manager at a local florist, you supervise two employees, Anita and Jerome. There are two tasks that need to be completed: floral arrangements and flower delivery. It takes Anita 30 minutes to finish one floral arrangement and it takes her 40 minutes to make one delivery. It takes Jerome 10 minutes to finish one floral arrangement and it takes him 30 minutes to make one delivery.
a. What are Anita and Jerome’s opportunity costs of making floral arrangements? What is each of their opportunity costs of making one delivery?
b. Who has a comparative advantage in floral arrangements? What about deliveries?
c. Suppose, initially, Jerome and Anita each spent 4 hours each day doing floral arrangements and 2 hours each day doing deliveries. If you changed their tasks so that each individual did nothing but the task for which they had a comparative advantage, how many more floral arrangements would your store make, and how many more deliveries?
How Many Pints of Blackberries? The pleasure you get from each pint of freshly picked blackberries is $2.00. It takes you 12 minutes to pick the first pint, and each additional pint takes an additional 2 minutes (14 minutes for the second pint, 16 minutes for the third pint, and so on). The opportunity cost of your time is $0.10 per minute.
a. How many pints of blackberries should you pick? Illustrate with a complete graph.
b. How would your answer to (a) change if your pleasure decreased by $0.20 for each additional pint ($1.80 for the second, $1.60 for the third, and so on)? Illustrate with a complete graph.
Chapter 2 Solutions
Microeconomics (MindTap Course List)
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