3. What is the opportunity cost of increasing the annual output of corn from 800 to 1000 pounds? 4. What is the opportunity cost of increasing the annual output of corn from 200 to 400 pounds? 5. Can you explain why the answers to parts 3. and 4. above are not the same? What does this imply about the slope of the production possibility frontier? --------------------- References: Grading Rubric Microeconomics: Unit 2 Assignment: PPF and Opportunity Costs | Content | Points
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Case: Moneyball Facts The Oakland A’s short term vision & strong focus on analytics would let them run a profitable team through an entire season on a low budget. Beane relied on a team of two Ivy League analysts focused on statistics in order to provide Beane the necessary tools to undergo a series of trades at half of the season‚ where trends became serious and teams would focus on next year´s. The Oakland A’s identified a flaw in the market‚ which was the on base percentage‚ rather than the
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equilibrium will be established at the same level of output but at a higher price level. 3.1.11 The Classical Theory of the Interest Rate In the Classical theory‚ using the Cambridge approach‚ the interest rate (the price of money) measures the cost of holding cash. At a given level of k‚ individuals therefore have what is called ‘loanable funds’ (hence Keynes’ called the Classical Model of interest the ‘Loanable Funds Theory’. Beyond their need for money for transactional purposes‚ cash can
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competitive acquisitions may not award the contract to the lowest bidder. “This process permits tradeoffs among cost or price and noncost factors and allows the government to accept other than the lowest priced proposal. The perceived benefits of the higher priced proposal shall merit the additional cost‚ and the rationale for tradeoffs must be documented in the file” (Murphy‚ 2009). Being awarded cost-reimbursement contract would be best for a contractor because most‚ if not all‚ of the risk falls on the
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QUEUING THEORY HISTORY • Queuing theory had its beginning in the research work of a Danish engineer named A.K. Erlang. • In 1909‚ Erlang experimented with fluctuating demand in telephonic traffic. • 8 years later‚ he published a report addressing the delays in automatic dialing equipment. • At the end of World War II‚ Erlang’s early work was extended to more general problems and to business applications of waiting lines. M/M/1 SINGLE - CHANNEL WITH POISSON Azenith Cayetano
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economics. The things I miss out of while working or going to school is a complete opportunity cost. Or even that the way I purchased goods was complete and total economics. After basically discovering a whole new life‚ I came to a conclusion that without economics the life that we live would not be possible. Everyone‚ whether they’re as oblivious as I was or they are aware of it‚ deal with piece ceilings‚ opportunity costs‚ taxes of course‚ goods and services etc. There’s absolutely no way of avoiding
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prediction." Juneau Empire. 7 Nov. 2008. Associated Press. 15 Dec. 2008 <http://http://www.juneauempire.com/stories/110908/sta_354024005.shtml>. "Considering the opportunity cost." Corrente SBL "Dems:Hidden costs double price of war." Washington Post. 17 Nov. 2007. 14 Dec. 2008 <http://http://www.newser.com/story/11589/dems-hidden-costs-double-price-of-war.html>. Galles‚ Gary M Grant‚ Kelly B. "Car Makers Lavish Incentives on SUV and Truck Buyers." Smart Money. 18 June 2008. 14 Dec. 2008 <http://http://www
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1. How does Ben’s age affect his decision to get an MBA? This document is the property of Management Development Institute‚ Gurgaon. Ben passed out from college six years ago with a finance undergraduate degree. He is 28 years of age and his goal I to become an investment banker. Ben’s age can affect his decision to get an MBA due to the following reasons: o His age determines the time period wherein he can be productively employed. The time window available to Ben keeps on reducing with age
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: In-house : Outsourced Incremental annual cost of Option A compared to Option C (Pounds Sterling) Period< 4 years Period > 4 Years Materials 6600 7400 Labor 4700 4700 Manager’s salary 800 800 Rent of warehouse 850 850 Depreciation (opportunity cost) of Machine 500 1500 Maintenance of machine 360 360 Other expenses 1575 1575 Total 15385 17185 Payment to Packages Ltd. (Savings) -16250 -16250 Net Incremental Cost -865 935 OPTION B COMPARED TO OPTION C Manufacturing
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4. Who will be the consumers using this public good? The consumers this good would be the people who are the owners of dogs. 5. What is the opportunity cost of building this park? A. In terms of economics‚ opportunity cost is the value of the next-highest valued alternative use of that resource. In this case‚ the opportunity cost would be the offer of 850‚000 dollars to purchase the land and build 40 new luxury homes. B. Identify at least one pro and one con
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