Homework1 - Valerie Bodden K. (10-0014) Macroeconomics...

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Valerie Bodden K. (10-0014) Macroeconomics Prof. Pamela Sued January 14, 2011 Homework 1. Think through the example on slide 6 of the ppt pres. for chapter 1. How may one approach the question: "Should Apple produce an additional 300,000 iPods?." What sort of information may one need in order to answer the question. How does that relate with marginal analysis? Well, Apple could produce an additional 300,000 iPods if the marginal cost is equal to the marginal benefit. Meaning that they should only produce the additional iPods if it does not result in losses for the company or in the decrease of profit. You would want to know the demand, the cost of production, the marginal revenue, and things as such in order to make an accurate decision. 2. Illustrate the three fundamental questions in economic analysis (slide 9) with an example from a news piece from a newspaper, magazine, the net, etc. (bring to class). Be ready to explain your illustration in class.
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This note was uploaded on 08/09/2011 for the course ECONOMICS --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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Homework1 - Valerie Bodden K. (10-0014) Macroeconomics...

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