Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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Chapter 3, Problem 4TY
To determine
The J's
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Stan Moneymaker needs 15 gallons of gasoline to top off his automobile’s gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.90 per gallon and Stan’s car gets 25 mpg for in-town driving. Should Stan make the trip to get less expensive gasoline? Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on the environment. What other factors (cost and otherwise) should Stan consider in his decision making?
Use the table with data for Maria and Jose to answer the question.
Table: Maria and Jose Produce Strawberry Jam
Jose charges $8 per
jar.
Maria charges $8 per Maria earns $200, and | Maria earns $50, and
Jose earns $180.
Jose charges $4 per jar.
Jose earns $280.
jar.
Maria charges $4 per
jar.
If Jose charges $8, Maria should charge
Maria earns $300, and Maria earns $180, and
Jose earns $40.
Jose earns $150.
If Jose charges $4, Maria should charge
$8; $8
$4; $4
$8; $4
O $4; $8
Potatoes cost Janice $0.50 per pound, and she has $5.00 that she could
possibly spend on potatoes or other items. Suppose she feels that the first
pound of potatoes is worth $1.50, the second pound is worth $1.14, the third
pound is worth $1.05, and all subsequent pounds are worth $0.30 per
pound.
Instructions: Enter your answers as a whole number.
a. How many pounds of potatoes will she purchase?
pound(s) of potatoes
b. How many pounds will she purchase if she has only had $2.00 to spend?
pound(s) of potatoes
Chapter 3 Solutions
Microeconomics: Principles & Policy
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