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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?
a. the cost of the laptop
b. the foregone interest
c. the foregone interest and the cost of the laptop
d. the cost of the laptop minus the forgone interest
Consider a diagram containing isocost curves for the production of a given level of a final commodity in the household production model. Assume that purchased inputs are represented on the vertical axis while the time input is measured on the horizon..
Calculate the quality adjusted life expectancy of the person using the health score from the previous question. (Round to 2 decimals)
A stock's price is $100 at the beginning of a year. There is a 25 percent chance that the price will be $90 at the end of the year, and a 75 percent chance that the price will be $130 at the end of the year. The stock will pay a dividend of $10 durin..
Certain environmental laws prohibit EPA from considering the costs of meeting various standards when the levels of the standards are set. Is this a good example of “putting first things first” or simply an unjustifiable waste of resources? Why?
There are two gravel suppliers in the Davis area, Hibbert (H) and Davis Lumber (D). They are engaged in Cournot competition, and face the same inverse demand curve for gravel, given by P = 60 - 5Q, where P is in dollars per cubic yard (yard, for shor..
DL = SL in a perfectly competitive input industry or for an imperfectly competitive input industry that hires heterogeneous labor (or practices wage discrimination) but not for an imperfectly competitive input industry that hires homogeneous labor (o..
Consider the production function f(L,K)=L+K. Suppose K is fixed at 2. (a) Find algebraic expressions for the total product of labor function TP(L), the average product of labor AP(L), and the marginal product of labor MP(L). (b) Graph the functions i..
Refer to the above graph for a profit-maximizing monopolist. At equilibrium, the firm will be earning:
A consumer must divide $600 between consumption of products X and product Y. The relevant market prices are Px = $10 and Py = $40. Write the equation for the consumer's budget line.
q. 1. did you find that the items grouped together as you worked down the flow chart had similar characteristics in
A chemical factory is situated next to a farm. Airborne emissions from the chemical factory damaged the crops on the farm. Using the marginal benefits and costs schedule above, plot a graph that shows the interaction between benefits to the factory ..
Using the national income identity find the value of imports (IM). Illustrate what is the current account balance. Illustrate what is the savings rate.
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