This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose you could measure the value in monetary terms for the following three things that you could ... (Read 81 times)

xroflmao

  • Hero Member
  • *****
  • Posts: 515
on: Jun 29, 2018
Suppose you could measure the value in monetary terms for the following three things that you could do with your time this Friday evening: a) doing your homework - 50, 2) spending time with your friends - 40 or c) taking a nap - 30 .
 
  Armed with only this information which activity has the lowest opportunity cost? Which two activities have the same opportunity cost? Based on what you have discovered what is the best use of your time and why?

Question 2

If an average cost pricing rule is imposed on the natural monopoly in the figure above, then the firm will
 
  A) incur an economic loss.
  B) make zero economic profit, that is, its owners make a normal profit.
  C) make an economic profit of 4 million.
  D) make an economic profit of 9 million.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

marict

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 29, 2018
Answer to Question 1

The opportunity cost of doing your homework is only 40 which is the next best available alternative. Spending time with your friends has an opportunity cost of 50 since this is the next best available alternative. And it turns out this is also the opportunity cost of taking a nap as well. Therefore, the best use of your time is to spend it doing your homework since the opportunity cost of doing so is lower than the other two alternatives.

Answer to Question 2

B


xroflmao

  • Member
  • Posts: 515
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

LegendaryAnswers

  • Member
  • Posts: 341
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Land Plant Reproductive Terms Land Plant Reproductive Terms
Frequently Used Computer Terms Frequently Used Computer Terms
Performing a Spirometry Test to Measure Forced Vital Capacity Performing a Spirometry Test to Measure Forced Vital Capacity
The More Things Change, The More They Say the Same: Dividing the Nation's Income The More Things Change, The More They Say the Same: Dividing the Nation's Income
A partial stream sampling exhaust probe being used to measure exhaust gases in parts per million ... A partial stream sampling exhaust probe being used to measure exhaust gases in parts per million ...
How to combine like-terms in expressions containing multi-brackets How to combine like-terms in expressions containing multi-brackets
Video: Bulk flow - factors that influence bulk flow

For a complete list of videos, visit our video library