Category: Uncategorized

Rodrigo operates a dry-cleaning service and charges customers $5 per article of clothing. Based on his knowledge of operations, the 1,000th piece of clothing costs him $4.95 to dry-clean. If he takes additional business, however, the 1,001st piece will cost $5 for the service. Does he take the additional business?

Karla, a landscaper, is trying to decide whether to hire Anton, a student, to help her with a big job. She would pay him $20 per hour. Every task takes Anton three times as long to complete as it takes Karla. Karla is able to earn $90 per hour for her own time and has more landscaping jobs than she can handle. What is Karla’s opportunity cost of hiring Anton?

Refer to the following figure. At a price of $15, this market is experiencingClick to view larger image.

When the number of firms in a market decreases,

Decision makers engage in marginal thinking by

In economics, decisions are necessary because ________ are scarce, while ________ are practically unlimited.

According to economic thinking, the presence of scarcity requires

Suppose there is a country where factory production creates a lot of the air pollution. What could be a possible trade-off if the country wanted to lower the levels of pollution?

2.7.1   You wish to place a heading above row 1. Briefly explain how you would go about doing this. (2)

Private charities offer numerous arts subsidies through grants and low-cost equipment to summer camps. Because of this, we expect that the equilibrium price of arts education will ________ and the equilibrium quantity of students will ________.