Explain why sink cost is neither priceless nor free

Assignment Help Microeconomics
Reference no: EM13239517

Master Card has a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceless, everything has a price. Take something from your experience, that is allegedly free or priceless and use the concepts of accounting costs, economic costs, explicit costs, implicit costs, opportunity costs and sunk costs to explain why it is neither priceless nor free. Respond to at least two of your fellow students' postings.

Reference no: EM13239517

Questions Cloud

What price will we observe in m2 and m3 : Consider three markets: M1, M2, and M3. There are features of these markets that the Department of Justice observes and features the Department of Justice does not observe. The DOJ observes that M1, M2, and M3 have one
Find the profit-maximizing output level for the company : However, this is a short-run analysis where physicians are variable but laboratories are fixed. Suppose that each physician costs $500 per day (for an annual salary of about $175,000) and the daily cost for the laboratory is $1,500 (for rental cos..
Determine the profit maximizing price and quantity : Determine the profit maximizing price and quantity. At this price and quantity, calculate this monopoly's economic profits. d)  Given this firm's level of economic profits, where must the firm's average total cost curve (ATC) and average variable c..
How much charge is on each plat : It takes 16J of energy to move a 0.30-mC charge from one plate of a 15-?F capacitor to the other, How much charge is on each plat
Explain why sink cost is neither priceless nor free : Master Card has a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceles..
Calculate the work done by the battery to charge the plates : A homemade capacitor is assembled by placing two 9-in. pie pans 4cm apart and connecting them to the opposite terminals of a 6-V battery, Estimate the work done by the battery to charge the plates
Write the total cost function and total revenue function : A company has fixed costs of $ 28000 and variable costs of 0.4x +222 dollars per unit, where x is the total number of units produced. Also, the selling price of its product is 1250-0.6x dollars per unit.
Describe the concentration of in the solution : A 1.00L solution containing 3.50x10^-4M Cu(NO3)2 2.20x10^-3M ethylenediamine(en). The kf for Cu(en)2+ is 1x10^20. What is the concentration of Cu2+(aq) in the solution
Find the temperature of the air inside the balloon : Consider a hot-air balloon. The deflated balloon, gondola, and two passengers have a combined mass of 315 kg, Then find the temperature of the air inside the balloon

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Why is productivity related to the standard of living

Why is productivity related to the standard of living In your answer be sure to explain what productivity an standard of living mean. Make a list of things that determine labor productivity.

  Question raised by critics of medical licensure

decrease in your real income that results when photographic equipment you purchase increases in price because of increased demand by others for these items. cost you bear when your neighbor has a noisy party and does not compensate you for your dis..

  Price of burger kings whopper hamburger declines

The price of Burger King's Whopper hamburger declines and mcDonald's distributes coupons for $1.00 off the purchase of a Big Mac.

  An economy''s production possibilities are

An economy's production possibilities frontier is also its consumption possibilities frontier. under all circumstances,under no circumstances or else.

  Determine the substitution and output effects on labor

The technology of a company making high end, solid gold bracelets in Soho (NYC) is explained through the production function;

  Marginal benefit and supply curve solutions

Suppose you manage an agency that provides Meals on Wheels to infirm elderly residents in the county. The agency operates three kitchens. Each kitchen is producing one-third of the total meals every day.

  Evaluate the validity of the claim

Politicians who support the green movement often argue that it is profitable for firms to pursue a strategy that is "environmentally friendly" (for example, by building factories that do not pollute and are not noisy), because workers will be will..

  Determining producers surplus

Find out the price p0 = S(q0) at which q0 units will be supplied and compute the corresponding producers' surplus PS. Sketch the supply curve y = S(q) and shade the region whose area represents the producers' surplus.

  Agricultural demand and innnovation

Because agricultural demand is inelastic, a technological advance which lowers production costs will reduce total revenue. Thus, farmers have no incentive to introduce such a technique.

  Why was 40 percent discount offered only after the rejection

"I see that your shoes are ‘buy one, get one free - limit one free pair per customer.' Will you sell me one pair for half-price" The clerk answered, "I can't do that." When the customer started to leave the store, the clerk hastily offered,

  The owner of pat''s pizza restaurant minimizing cost

Consider the following information in the table for Pat's Pizza Restaurant

  What is the current unemployment rate

What is the current unemployment rate (hint: the update on the unemployment rate is usually released the first friday of each month) Do you think this unemployment rate is generally considered to be above, below or equal to NAIRU

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd