MT1ClassReview

MT1ClassReview - Midterm 1 Review Options A B C D E F Q...

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1 Midterm 1 Review Options Q Potatoes Q Fish A 1,000 0 Q1: Is 800 potatoes and 500 fish B 800 300 feasible? C 600 500 Q2: If you are at D, what is the D 400 600 opportunity cost of producing E 200 650 200 lbs. of potatoes? F 0 675 Q3: Between B and C what is the opportunity cost of producing 1 more fish? Q4: Between D and E what is the opportunity cost of producing 1 more fish? Tivoli can produce 20 spaghetti dinners or 60 meatball dinners in a day. Frivoli can produce 40 spaghetti dinners or 80 meatball dinners in a day. Who has a comparative advantage in spaghetti dinners? Who has an absolute advantage in spaghetti dinners? If you use frequent flyer miles for a spring break trip is the opportunity cost zero? Consider the market for chocolate ice cream. What happens if: 20% of the cows die a new study says chocolate is good for you the cost of vanilla declines a new technology for freezing reduces production cost Consider the market for cereal. What happens if: the price of milk (a complement) increases the price of wheat (an input increases) Consider the market for newspapers. What happens if: journalists’ salaries increase it is election season Use opportunity cost to explain the following:
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MT1ClassReview - Midterm 1 Review Options A B C D E F Q...

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