Reference no: EM131204084
You own a building that has possible uses: an Iternet cage, a coffee shop, an ice cream store, and a bookstore. The value of the building in each use is $2,000; $3,000; $4,000; and $5,000, respectively. You decide to open an ice cream store. The opportunity cost of using this building for an ice cream store is ___________.
a. $2,000, the value if the building is used as an Internet cafe
b. $3,000, the value if the building is used as a coffee shop
c. $3,333, the average of the values if the building is used for either an Iternet cafe, a coffee shop, or a bookstore
d. $5,000, the value if the building is used for a bookstore
|
Other resources that enhance differentiation
: Discuss how the three diversified companies are able to leverage the use of well respected brand names or other resources that enhance differentiation.
|
|
Significant contributor to cross-country income differences
: Suppose you are interested in the hypothesis that internet access is a significant contributor to cross-country income differences. The nai¨ve approach would be to look at the correlation between PPP GDP p.c. and internet access. Explain what the nai..
|
|
Consumer is currently spending all of her income
: Suppose that a consumer is currently spending all of her income on 10 units of goods A and 5 units of goods on B. The price of A is $4.00 per unit, the price of good B is $10.00 per unit, the marginal utility of the last unit of good A consumed is 20..
|
|
Why is price directly related to quantity supplied
: State the law of supply. Why is price directly related to quantity supplied?
|
|
Opportunity cost of using this building for ice cream store
: You own a building that has possible uses: an Iternet cage, a coffee shop, an ice cream store, and a bookstore. The value of the building in each use is $2,000; $3,000; $4,000; and $5,000, respectively. You decide to open an ice cream store. The oppo..
|
|
What will be her opportunity cost in buying the laptop
: Sarah has a saving account with a $1,000 balance that earns 3% APY. She decides to withdraw the entire balance to buy a laptop computer. What will be her opportunity cost in buying the laptop?
|
|
What does this waiting suggest about supply and demand
: Sometimes price cuts can have an unintended result of consumers waiting for deeper discounts. What does this waiting suggest about supply and demand?
|
|
Market demand curve from individual demand curves
: To derive a market demand curve from individual demand curves, it would be necessary to:
|
|
Comparative advantage is one of the few ideas in economics
: Nobel laureate Paul Samuelson said that comparative advantage is one of the few ideas in economics that is both "true and not obvious." n 30 minutes, Kana can either make miso soup or she can clean the kitchen. In 15 minutes, Mitchell can make miso ..
|