1. micro - Maya Cohen Id 066370065 Exercise 1 Shortage and...

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Maya Cohen Id 066370065 Exercise 1 Shortage and alternative cost 1. Question 1 a. See graph number 1 in attachments. b. Opportunity cost Average alternative cost Marginal alternative cost X Y X Y A 200-200=0 No loss 100-0= 100 100 0/0=0 24/21 (6-0)/(21-20)= 6 B to A B 21-20=1 1 24-6= 18 18 1/6 18/20=9/10 (12-6)/(20-19)= 6 C to B D 21-17=4 4 24-13=11 11 4/13 11/17 (14.5-13)/(17-16)= 1.5 E to D F 21-14= 7 7 24-17= 7 7 7/17 7/14= 1/2 (18-17)/(14-13)= 1 G to F I 21-9= 12 12 24-21= 3 3 12/21 3/9= 1/3 (24-21)/(9-0)= 1/3 J to I 2. Question 2 When engaging in commercial activities, there is always an opportunity cost. It is important to weigh the cost we pay for receiving the merchandise.
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Gold is an element found on earth as well. The cost of supporting the mission of gold digging on the moon is not worth the final product we receive. If we are spending more money than we are getting by selling the product, then the costs- revenues equation is to our disadvantage. However, let's assume the element gold has been diminished from our world due to
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This note was uploaded on 10/25/2009 for the course BUSINESS 772 taught by Professor Sadeh during the Spring '07 term at Interdisciplinary Center Herzliya.

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1. micro - Maya Cohen Id 066370065 Exercise 1 Shortage and...

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