These options should quickly fix everything that plagued the one you have now. Mary Suiter, Business Relationship Manager: 44) The figure above shows the production possibilities frontiers for the United Kingdom and France. That is correct. Consider the following: A. Jack, because if he fixes a car, he gives up shoveling That is incorrect. Divide the amount of time that it takes Jack to complete a carpet replacement by the amount of time that it takes him to write a book report. lower opportunity cost when repairing cars. In order to complete one carpet replacement, Jack would have to give up the time it would take him to complete 0.25 of a book report (1 divided by 4). In order to replace the carpet in one room, Andy will have to give up the time it takes him to complete two book reports (4 divided by 2). B. Andy, because Jack has the absolute advantage. The total price is highly dependent on the size of the space, the quality of materials, and whether or not that layout will change. Finance Costs – Financing costs were based on a down payment of 15% using average current industry rates. What is Jack's opportunity cost for carpet replacement? The correct response is A. Jack has the lower opportunity cost when repairing cars because if he fixes a car, he only gives up shoveling one driveway. What is Jack's opportunity cost for carpet replacement? Barb Flowers Steve Morby as Andy Marquette High School, JCB 3CX 14: Powered by a 74 horsepower engine with a 14'7" maximum dig depth. Table 2-2 shows the output per day of two gardeners, George and Jack. St. Louis, Missouri, Mark Bayles, Atlanta, Georgia, Brian Voss, Divide the amount of time that it takes Andy to write a book report by the amount of time that it takes him to replace the carpet in one room. Clayton, Missouri, Eva Johnston, Lesia Kuykendall, Voice Talent: What is Jack's opportunity cost of mowing a lawn? Caroline has $15,000 worth of stock she can sell now for $20,000. What is Jack’s opportunity cost of producing 1 ukulele? A. R5 000. cars. If Andy fixes a car, he gives up shoveling two driveways. car, who has the lower opportunity cost and why? That will help you arrive at the correct answer: 0.25 of a book report. The replacement cost is an amount that a company pays to replace an essential asset that is priced at the same or equal value. Social Studies Teacher, driveway. 13 - What is marginal product, and what does it mean if... Ch. Replacement cost is the price that an entity would pay to replace an existing asset at current market prices with a similar asset. Doing one thing often means that you can't do something else. and click "check answer" to find out if you're right. C. Jack, because he could shovel four driveways in the time Andy fixed one car. That is incorrect. I’d buy your entire inventory and sell it at today’s price of $5 a pound and make a killing. This severely limits the tax benefit of doing capital improvements to buildings. 13 - Draw the marginal-cost and average-total-cost... Ch. Mary Suiter, Business Relationship Manager: Before watching the Opportunity Cost episode, we asked you to consider who had the That will help you arrive at the correct answer: 4 carpet replacements. Federal Reserve Bank of Atlanta, Chesterfield, Missouri, Amy Hennessy, Joe Totherow as Jack Before discussing comparative advantage, let's practice determining opportunity costs. Economic and Financial Education Specialist, 13 - Draw a production function that exhibits... Ch. To minimize labor maintenance costs, many smelters prefer to replace worn out or broken jacks with new units, if costs of the new unit permit. The amount of food they can obtain each week is presented in the table below. Refer to Table 2-2. That is correct! Explain your. Of course, you’d have every right not to be a “price-gouger” and continue to charge me $3.25 a pound. (Input your answer as a What this means is that, if you have to decide between a R5000 iPhone or a R15000 iPhone, by committing the extra R10000 to the purchase means that you can’t utilise the R10000 to purchase something else. D. Andy, because he misses the opportunity to shovel two driveways and Jack misses the opportunity to shovel one driveway. What is the opportunity cost to him of the carpet? D. Andy, because he misses the opportunity to shovel two In order to complete one book report, Jack would have to give up the time it would take him to replace the carpet in four rooms (4 divided by 1). Date ate 3/4 of one pizza, Jenny ate 1/8 of a pizza, Danny ate 1/4 of a … Is this an output problem or an input problem? That is incorrect. John spends R5 000 on a new carpet. Another car model costs $14,000 & costs ab average of $.08 to maintain. Math. 13 - Define total cost, average total cost, and... Ch. Jack’s opportunity cost of mowing a lawn is 2/3 (4/6 = 2/3) and George’s opportunity cost of mowing a lawn is 2 (10/5 = 2). 12. If Jack quits his job and goes to medical school, the salary he currently earns would be considered what type of cost? Mark Kunzelmann as The Narrator Lesia Kuykendall, Instructional Designer: What is Jill’s opportunity cost of producing 1 surfboard? Opportunity cost is the loss of other alternatives when one alternative is chosen. Get one per floor and don't get the cute little ones - get 5lb or 10lb models - these will get you between 10 and 20 seconds of spray. Social Studies Teacher, Check Answer: That is incorrect. Hours needed to produce one unit Ukuleles Surfboards Jack 12 4 Jill 25 5 11. You have amazing skills! him to repair a car. Attwood is devoted to leading marine innovation through advanced technology. cost when repairing cars because if he fixes a car, he only gives up Most homeowners spend between $12,800 and $21,200, with an average cost of $16,600 or $150 per square foot. Marquette High School, If the asset in question has been damaged, then the replacement cost relates to the pre-damaged condition of the asset. Economics Professor, driveways and Jack misses the opportunity to shovel one Explain your. The replacement co . What is the opportunity cost of one bushel of wheat in France? Kathie Lauher as Miss Information, Teacher Reviewers: shoveling one driveway. That’s a 3.5 percent year-over-year increase, and another 3.5 percent hike is expected in 2018, according to Turner & Townsend’s 2018 International Construction Market … He is thinking of quitting his job to pursue a medical degree. That is incorrect. Divide the amount of time that it takes Jack to complete a carpet replacement by the amount of time that it takes him to write a book report. An opportunity cost is the value of the best alternative to a decision. Andy fixed one car. The land, labour and capital used in manufacturing the carpet. Consider the following: A. Jack, because if he fixes a car, he gives up shoveling 1 driveway. To find the opportunity cost between two activities you divide the activity that you’re engaging in into the activity that you are giving up. Nicholas Peppes, decimal instead of fraction where applicable. two-thirds of a garden cultivated. 13. 13 - Give an example of an opportunity cost that an... Ch. That will help you arrive at the correct answer: 0.25 of a book report. It is equally possible that, had the company chosen new equipment, there would … • Some smelters have requirements for complete anode We didn't have any incident, fortunately. Andy, on the other hand, could shovel two driveways in the time it takes If you ordered two pizzas for dinner Friday. St. Louis Community College - Forest Park, A)out of pocket B)historical cost C)opportunity cost D)replacement cost . Daniel McFarland as The Narrator The opportunity cost of this decision is the lost wages for a year. (Input your answer as a decimal instead of fraction where applicable. Federal Reserve Bank of Atlanta, driveways. Jack has to have the lower opportunity cost when repairing cars. Given the time associated with each task, if both Jack and Andy repair a St. Louis, Missouri, Mark Bayles, For Jack, the opportunity cost of hunting 1 bear is f ish. What is Jack's opportunity cost of cultivating a garden? Economics. Libertyville High School, 1 driveway. The other things he could have bought with the R5 000. In order to write one book report, Andy would have to give up the time it would take him to replace 0.5 of the carpet in one room (2 divided by 4). What is Andy's opportunity cost for carpet replacement? Historical costs do not determine prices; what economists call opportunity costs do. If each model is driven the same # of miles, after how many miles would the total cost be the same? ), Subject Matter Experts: Thee same financing rate was used for all four vehicles. Decisions typically involve constraints such as time, resources, rules, social norms and physical realities. Check Answer: That is incorrect. Emily Smith Use the information above to compute Sawyer's opportunity cost of each good. Plus, if you think all that’s need is to replace your old sofa bed’s mattress, we also have three reviews of the best sofa bed replacement mattresses. Now we can limit our risk. C) Jack and Jill produce beyond their PPF. B. Andy, because Jack has the absolute advantage. Economists consider which of the following costs to be irrelevant to a short run business decision? 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