Eliza has $300 of income. The price of pears is $2 each. The price of almonds...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Eliza has $300 of income. The price of pears is $2 each. The price of almonds is $1 each. Show her budget constraint. What is the opportunity cost of pears in terms of almonds? 2. Kit has income of $1,000. (a) Sketch Kit's budget line if the price of muffins is $5 and the price of cookies is $10. (b) What is the slope of this budget constraint? (c) What is the opportunity cost of a muffin in terms of cookies? 3. Jamie's production possibility frontier is sketched below, to the left. Rumi's is sketched on the right. Market Goods ($) 50 Jamie's PPF 80 Home Goods ($) Market Goods ($) 90 Rumi's PPF 30 Home Goods ($) a. How much must Jamie forgo in dollars of home goods in order to get an additional dollar of market goods? b. What is the opportunity cost of market goods for Jamie? c. How much must Rumi forgo in dollars of home good to get an additional dollar of market goods? d. What is the opportunity cost of market goods for Rumi? e. What is the opportunity cost of home goods for Rumi? Eliza has $300 of income. The price of pears is $2 each. The price of almonds is $1 each. Show her budget constraint. What is the opportunity cost of pears in terms of almonds? 2. Kit has income of $1,000. (a) Sketch Kit's budget line if the price of muffins is $5 and the price of cookies is $10. (b) What is the slope of this budget constraint? (c) What is the opportunity cost of a muffin in terms of cookies? 3. Jamie's production possibility frontier is sketched below, to the left. Rumi's is sketched on the right. Market Goods ($) 50 Jamie's PPF 80 Home Goods ($) Market Goods ($) 90 Rumi's PPF 30 Home Goods ($) a. How much must Jamie forgo in dollars of home goods in order to get an additional dollar of market goods? b. What is the opportunity cost of market goods for Jamie? c. How much must Rumi forgo in dollars of home good to get an additional dollar of market goods? d. What is the opportunity cost of market goods for Rumi? e. What is the opportunity cost of home goods for Rumi?
Expert Answer:
Answer rating: 100% (QA)
1 Elizas Budget constraint and oppurtunity cost i Eliza has 300 of income The price of pears is 2 each and the price of almonds is 1 each To show her ... View the full answer
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
Students also viewed these mechanical engineering questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Marcus is the HR manager for United Airlines, an Illinois-based company. One of his employees has recently become disabled and is unable to fulfill the essential functions of his current position,...
-
Why should acquired companies be integrated quickly?
-
Provide two examples of strategies you have put in place to support all children to fully participate as valued members of the group (e.g., intentional teaching, use of peer support when...
-
Comment on the following: An information system is a product.
-
Consider the following two-country model of the market for spinach. All producers and consumers take the price of spinach as given. Home's supply curve for spinach is given by SH = 5 + P, where sH is...
-
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $274,000 and direct labor hours to...
-
The production manager at a factory manufacturing four types of light fittings (A, B, C and D) on an automated machine is fixing the schedule for the next week on this machine. HEIJUNKA SCHEDULING OF...
-
Use the following information for problems 1-4. On January 1, 2020, Adams acquires 100% of Baker in a transaction accounted for using the acquisition method. Adams will use equity accounting for its...
-
Question: Your company, IRTC Manufacturing Enterprises, is upgrading its legacy billing system. The system was installed originally ten years ago, and has been upgraded according to the vendor's...
-
Question: Given the master lock expects its wholesale distributors to provide virtually all the support needed by retailers, what kind of support do you think the wholesaler distributors should...
-
TRAINING AT THE SPICES FACTORY Ana Maria is an employee at the Mak Long Spice Factory Sdn Bhd, in Butterworth, Penang. Ana Maria has five years of experience in Mak Long's Date Spice Division....
-
Which of the changes at Mattel are emergent, and which are planned? What is your assessment of Ynon Kreizs changes, given the challenges facing the company? What imageor imagesof change management...
-
A memoryless binary source with output alphabet = {1,0) and corresponding probabilities p(X =1) = 0.7 and p(X = 0) = 0.3 produces sequences of length 50. (a) (10 pts) Find the most probable sequence...
-
Suppose we want to build a portfolio of Tesla and Amazon. After some analysis we determine that Tesla = 0.80 and Amazon = 1.40. We've also determined that the appropriate risk-free rate is 2% and...
-
Show that gj concave AHUCQ Abadie For nonnegative variables, we have the following corollary.
-
What kind of account is Sales Returns and Allowances?
-
Programs Plus is a retail firm that sells computer programs for home and business use. On December 31, 2016, its general ledger contained the accounts and balances shown below: The following accounts...
-
What is the purpose of the postclosing trial balance?
-
The following are summaries of the cash book and bank accounts of J. Duncan who does not keep his books using the double entry system. You are required to: (a) Calculate the value of J. Duncan's...
-
Read the following and answer the questions below. On 31 December 2015 the bank column of C. Tench's cash book showed a debit balance of 1,500. The monthly bank statement written up to 31 December...
-
The bank columns in the cash book for June 2016 and the bank statement for that month for D. Hogan are as follows: You are required to: () Write the cash book up to date to take the above into...
Study smarter with the SolutionInn App