Microeconomics
Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
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Chapter 1, Problem 6RQ
To determine

To find the opportunity cost of playing paintball.

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Bill is a professional photographer. His camera is broken, and he needs a new one within the next hour, orhe will miss an important deadline. Lisa is a highschool student who doesn’t have a camera but wantsto get one to take pictures at her prom next month.Who do you think would have a higher willingnessto pay for a particular camera today? Why?
Think of an economic decision you made recently wherein the benefit outweighed the cost (or the cost outweighed the benefit).
Say that you are a manager with the Transportation Security Administration (TSA). The table below shows fictional estimates of the marginal benefit and marginal cost of additional TSA security lines at Mahlon Sweet Field, the airport in Eugene, Oregon. Number of Marginal In this space, draw the graph of the marginal data from the left columns. Answer these questions below using the data table and graph. Benefit 3. Security Lines 1 2 3 4 5 6 $10,000 9,000 7,000 5,000 4,000 3,000 Marginal Cost $2,000 3,000 4,000 5,000 8,000 12,000 The surplus of the marginal benefit over cost for the second security line is $ and $ for the third security line. If your goal is to maximize total surplus, you WILL / WILL NOT (circle one) operate a third security line. The optimal number of TSA security lines is because this is where the marginal equals the marginal which maximizes total
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