Chapter 1 Problems - Shannon Manno Chapter 1 Problems 1.2...

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Shannon Manno Chapter 1 Problems 1.2) The average cost of each crab leg to Gustavo would be $0.70. The marginal cost of an additional crab leg would be zero. Since the buffet is all-you-can-eat, any additional crab legs would not change the overall cost to Gustavo. 1.3) a) By quitting her job, Monique forfeits her $50,000 per year salary to earn nothing as a volunteer. The full cost is $50,000 per year. b) The full cost for the Agrizone Corporation is not only the $12 million dollars they have invested in the new inventory tracking system, but also possibly the time lost implementing the new system as well as training employees on its use. This could add up to many hours of labor costs, as well as loss of production while the training occurs. c) The full cost for Taylor would be the $500 he received. d) The full cost for Hector would be the salary he could have earned at a new job while working instead of backpacking across Europe. Hector also may have lost potential career opportunities due to taking that extra time off after graduating.

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