1. Explain how marginal costs, direct costs and opportunity costs are dierent. Use an example
from your personal life to illustrate each concept.
A. Marginal costs are the costs added by producing one extra item of a product, by building a
computer and bu
1. Normally, whenever a new video game console comes out, there is a shortage all over the
United States. Graphically illustrate and fully explain where the shortage comes from, how the
various roles of prices can come together to end the shortage, and wh
B.) Japan has the comparative advantage for both because they can produce more for less
Japan has the comparative advantage for DVD production and the US has the comparative
advantage for CD production. This is because they have a lower
FRQ 1: possible points 6
FRQ a.) 2/2 points because the student mentioned that north is better and that blue mart will
earn a higher profit and that it is $4,000 vs. $1000
FRQ b.) 0/2 points because the student said that south is a dominant strategy and t
If Enviromax wants to maximize profit, what price would they charge?
They would have to charge $20 to maximize profit.
What is their profit per unit if they are operating at the profit maximizing output?
The profit per unit is $19.03 if operating at prof