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We have been looking at just the Additional Marginal Opportunity Costs of our choices. What about the total cost? For example, we see and hear ads all the time about different cell phones and cell phone plans. I spoke with a representative of one phone company the other day. She started off with this is the Price of the Plan per month for 2 years and this is what you get for it. Then she said 'but wait. if you add this feature it is only $10 more a month.' That sounded pretty good and the she said 'but wait. if you add this other feature it is only $7 more a month.' What is I had only paid attention to the Marginal Cost and not asked what the Total Cost would be?
A company can lease an asset for the next five years by making lease payments that are equivalent to annual payments of $3,000 at year 0, $6,000 at year 1, $7,000 at year 2, $7,000
Suppose that you decide to leave your current job(with a salary of $60,000) to start your own business in a building (with a market value of $400,000) you already own. You pay $45,
2. Use the Quantity Theory of Money to explain inflation (a increase in the overall level of prices). (4 points) If you were a member of the Federal Reserve Board of the Governor
Explain why a perfectly competitive firm does not expand its sales without limit if its horizontal demand curve indicates that it can sell as much as desires at the current market
Sara runs a small business assembling personal computers. This table shows her total cost at different levels of output. Number of computers produced
One problem in using exchange rate when comparing GDP per capital between countries is that is fluctuates a lot. A way of avoiding dependence on exchange rate is to use purchasing
Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for ea
describe national income
Q. What is money and what is not money? If you are trying to conclude if something is money, basically consider whether it would be accepted in most stores as payment. Then you
1) Consumption is positively related to stock market wealth but negatively related to taxes and tax rates.
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