BEA683 Economics for Managers
Reading Gans, Core Economics for Managers, Chs. 1 and 2.
C&T, Ch. 11
JiTT Assignment 3: Decision Making and Costs
In order to prepare for the class on March 20 you are required to read on individual decision making and costs answer the following questions
Your assignment must be in Word format. You must submit your assignment through the ‘JiTT Assignment-Submission’ icon located on the home page of the BEA683 MyLO site. This assignment will not be accepted after 12 noon on Tuesday, March 18. Please ensure you include your name and ID number.
Answer questions 1 and 2 via the dropbox and answer questions 3 and 4 via the Quiz section on MyLO.
If you have problems submitting your assignment you MUST immediately contact your lecturer explaining the situation by email. In your email you must clearly identify in the title of your email that you experiencing a problem in BEA683 Economics for Managers. In the body of the email explain the specific problem.
As a by-product of reading your answers I will form an opinion of your individual effort but your grade here is based on your participation — I will not be giving you a grade on the content of your answers as the exercise is purely formative rather than summative.
The writing up of this assignment is supposed to be your own individual effort. The standard rules of attribution of authorship of ideas apply. And note I will take action against any case of plagiarism.
You are thinking of opening a deluxe fruit smoothie shop in Sydney. To do so requires importing highly specialised equipment from Europe. The equipment costs $200,000 and could be re-sold used for $50,000. The shipping costs $100,000 (one way). There are no other fixed costs. It will last for 2 years.
What are your sunk costs, if there are no other existing or...
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