Microeconomics (2nd Edition) (Pearson Series in Economics)
Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
Question
Book Icon
Chapter 6, Problem 10P

(a)

To determine

The flaw in the reasoning provided by Senator.

(b)

To determine

Change in the decision of building a new apartment due to a change in the expected revenue.

Blurred answer
Students have asked these similar questions
"I know that it's the thing to do," insisted Pamela Kincaid, vice president of finance for Colgate Manufacturing. "If we are going to be competitive, we need to build this completely automated plant." "I'm not so sure," replied Bill Thomas, CEO of Colgate. "The savings from labor reductions and increased productivity are only $4 million per year. The price tag for this factory-and it's a small one-is $45 million. That gives a payback period of more than 11 years. That's a long time to put the company's money at risk." "Yeah, but you're overlooking the savings that we'll get from the increase in quality," interjected John Simpson, production manager. "With this system, we can decrease our waste and our rework time significantly. Those savings are worth another million dollars per year." "Another million will only cut the payback to about 9 years," retorted Bill. "Ron, you're the marketing manager-do you have any insights?" "Well, there are other factors to consider, such as service…
An airline is selling tickets for a flight from London to Frankfurt. The price of an economy class ticket three months before the flight date was £30. The price of the same ticket one day before the flight is £300. Your friend, who knows you have studied Industrial Organization, asked you to explain why there’s this difference in price.
Given that the Suez Canal might be blocked, the only alternate sea route to Europe (from China) is sailing around the Cape of Good Hope. This route is approximately 3.600 miles (nautical) longer than the Suez Canal route, and takes about 9 days at typical 16.5 knots (mph).   List the factors (as many as you can think of) affecting the cost of transporting cargo by sea and guess their weight (importance) on the total cost.   What change in the factors above would affect the optimal sailing speed?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Economics (MindTap Course List)
    Economics
    ISBN:9781337617383
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Text book image
    Microeconomics
    Economics
    ISBN:9781337617406
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Text book image
    Economics:
    Economics
    ISBN:9781285859460
    Author:BOYES, William
    Publisher:Cengage Learning
Text book image
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Microeconomics
Economics
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning