Submit a 250- to 300-word response addressing the following points: Explain how the strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home. * How does the removal of the tax deduction on mortgage interest affect the housing market? * How do other changes in government spending and taxes affect your decision? When purchasing a home it is very important to take note of the economy at that time
Words: 333 - Pages: 2
indv max. their personal satisfaction given resource constraints Marginal Analysis and Benefits- more than dollars and cents 1. When to use it: in your own life and to change behavior 2. Sunken cost- costs and benefits that have already occurred a. Irrelevant to economic decision making b. Use opportunity cost rather than historic cost *Sunk cost fallacy: tendency to throw good money after bad 3. Opportunity cost: The value of the best alternate use 4. Indifference curves:
Words: 2608 - Pages: 11
dates and a more detailed discussion of the course grading scheme). The Costs of Production Select one or two of the following questions to answer. 1. What are opportunity costs? How do explicit and implicit costs relate to opportunity costs? Also, a key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant's estimate of total costs to be higher or lower than an economist's estimate? Explain. 2. The
Words: 2050 - Pages: 9
| | | | | |[pic] | | |Chapter | | | | |15 | | | | | | | |Monopolistic
Words: 5193 - Pages: 21
1 For a price-taking firm, marginal revenue a. is the addition to total revenue from producing one more unit of output. b. decreases as the firm produces more output. c. is equal to price at any level of output. d. both a and b e. both a and c 2 In a perfectly competitive industry the market price is $25. A firm is currently producing 10,000 units of output; average total cost is $28, marginal cost is $20, and average variable cost is $20. The firm should a. raise price because the firm
Words: 946 - Pages: 4
significant decisions people will make in their lifetime. There are many factors that can affect one’s overall decision to buy a home. When people consider making the jump from renting to owning, sometimes they mistakenly consider only the cost of the rent versus the cost of the mortgage payment. Unfortunately, some people make the decision to buy a home without considering these factors. In order to determine how much housing I can afford, I must factor in many things such as location suitable for raising
Words: 1887 - Pages: 8
keep the cost of production down, but also lower the amount that it will take to print and ship materials to stores or consumers' homes. Although a technology continues to increase on larger levels, consumers are still enjoying it literacy within the computer realm. The focus of this proposal paper is to analyze Will Bury invention for the digitized program which allows readers to read on heighten levels. The paper will also identify the market structure, elasticity of the product marginal cost and marginal
Words: 1414 - Pages: 6
Economics Principles of Sixth Edition 13 The Costs of Production © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Premium PowerPoint Slides by Ron Cronovich ACTIVE LEARNING 1 Brainstorming costs You run Ford Motor Company. List three different costs you have. List three different business
Words: 4753 - Pages: 20
Inc., is the consulting firm for the client who has given a project OS-7 project providing 3 different ways of payment. Upon the costs incurred by the consulting firm, it analyses the best option. Cost to the consulting firm: Time required for the work: 1000 * 24= 24000 Total cost: 140 * 24000 = 33,60000 Revenue for the year: 175000*24= 42,00,000 Marginal savings: 42,00,000 - 33,60000= 840000 |Client’s 1st proposal |Monthly |Annual
Words: 350 - Pages: 2
weekends. If the explicit costs total $150,000 for 30 days. a. Calculate the firm’s accounting profit for the month; Revenue equals 1000 items per day * $15/item*30days = $450,000.Explicit costs are given as $150,000. Therefore, accounting profit = $450,000-$150,000 =$300,000 b. Explain the reason why it is greater than economic profit. A company's total earnings, calculated according to Generally Accepted Accounting Principles (GAAP), and includes the explicit costs of doing business, such
Words: 720 - Pages: 3
