Suppose your friend is currently a nursing major. She decides she wants to switch her major to economics, but she would lose many of the college credits she has already earned. Explain to her why the past college credits should not be figured into her
marginal benefit and marginal cost calculation.
Please provide the best answer for the statement.
You should tell your friend that the previous courses she took in the nursing field are sunk costs. She has fallen into the sunk cost fallacy. She is putting weight on a previous purchase when those costs are in the past and should not be considered in making her decision. She should weigh the future expenses of the remaining years of nursing school with the economics program and the benefits of both to determine which is the best decision.
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Profit is maximized at the output at which marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)
Which of the following is an example of wealth?
A. A yearly salary of $40,000 B. A mutual fund balance of $1,000 C. Rental payments of $3,000 per month D. Stock dividends of $500 per quarter
Refer to the information provided in Figure 3.12 below to answer the question(s) that follow.
Figure 3.12Refer to Figure 3.12. The supply curve for hula hoops shifts from S0 to S1. This could be caused by
A. a decrease in the number of firms selling hula hoops. B. a decrease in the demand for hula hoops. C. a decrease in the price of hula hoops. D. either B or C.
Explain how free international trade tends to lead to factor price equalization under the assumptions of the HO model. What does this process predict about which groups should be in favor of or opposed to free international trade?
What will be an ideal response?