Question

Janice really likes potatoes. Potatoes cost $1.10 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first poofptaoesue worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? pound(s) of potatoes

Answer 1

a) Janice will consume 2 pounds of potatoes because for the first two pounds, worth of potatoes is greater than the cost of potato. Third pound gives worth of $ 1.05 to Janice while cost is $ 1.10 so Janice will not buy 3rd pound.

Full employment, fixed supplies of resources, fixed technology, and two goods.

b) To produce 2 more automobiles, producer has to decrease its production of forklifts from 21 to 12.

So, opportunity cost = 21 - 12 = 9 forklifts

To produce 6 more forklifts, producer has to decrease its production of automobiles from 4 to 2.

So, opportunity cost = 4 - 2 = 2 automobiles