Topics: Economics, United States, United Kingdom Pages: 1 (278 words) Published: October 7, 2013

1. The owner to the small pizzeria should compare the marginal benefit expected from increasing the radius of delivery area by one mile with the marginal cost. Some other additional cost of resources that would be required is the extra gas that will be used during the extra mile added. In result, you can begin with a marginal choice to see how these choices affect the additional sales revenue. 2. 200 C

Cars 100 B

A 600 1,000 Washing Machines

B. There is going to be one less washing machine that could be produced in this situation since there is an additional car that is going to be produced. Movements down the curve show that the opportunity cost of more capital goods is fewer consumer goods. C. Your cost is losing more washing machines, but you will have more consumer goods than in question B. D. The cost of producing an additional washing machine when 50 cars are being produced is that you increase capital production, but reduce consumer goods. Increasing capital reduces consumer goods only a little when 150 cars are being produced. E. The answers show me that opportunity cost is something to be taken into consideration when making choices especially business choices. It focuses on to make the best alternative for an individual. 3. The opportunity cost of going to Florida is $1,000.

​A. The opportunity cost of producing a unit of wheat in the United Kingdom is 1. The opportunity cost of producing a unit of wheat in the United States is -1.
​B. The United States has an absolute advantage in both wheat and cloth. ​C.
D. The United States should specialize in producing wheat and the United Kingdom should specialize in producing cloth.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • economic Essay
  • Essay about economics
  • Economics Essay
  • economics Essay
  • Economics Essay
  • Economics Essay
  • economic formative assignment Essay
  • Essay about Economics Ch 5 & 8

Become a StudyMode Member

Sign Up - It's Free