Andria Matzenbacher, Voice Talent: What is Jack’s opportunity cost of producing 1 ukulele? For Jack, the opportunity cost of catching 1 fish is a bear(s). Willing Students of Justice, let's review. The total price is highly dependent on the size of the space, the quality of materials, and whether or not that layout will change. St. Louis, Missouri, Mark Bayles, The increased value of a better decorated house. Finance Costs – Financing costs were based on a down payment of 15% using average current industry rates. That is incorrect. That will help you arrive at the correct answer: 0.25 of a book report. Economic and Financial Education Specialist, Kathie Lauher as Miss Information, Teacher Reviewers: Opportunity cost is the loss of other alternatives when one alternative is chosen. Divide the amount of time that it takes Andy to complete a carpet replacement by the amount of time that it takes him to write a book report. decimal instead of fraction where applicable. 13 - Give an example of an opportunity cost that an... Ch. 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). lower opportunity cost when repairing cars. 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. ), Subject Matter Experts: Use the information above to compute Sawyer's opportunity cost of each good. If Andy fixes a car, he gives up shoveling two driveways. The other things he could have bought with the R5 000. R5 000. What is the opportunity cost to him of the carpet? Consider the following: A. Jack, because if he fixes a car, he gives up shoveling That will help you arrive at the correct answer: 2 book reports. What is Jack's opportunity cost of mowing a lawn? Joe Totherow as Jack Of course, you’d have every right not to be a “price-gouger” and continue to charge me $3.25 a pound. a. The replacement cost is an amount that a company pays to replace an essential asset that is priced at the same or equal value. What is Andy's opportunity cost for carpet replacement? Before discussing comparative advantage, let's practice determining opportunity costs. 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). That is incorrect. Nicholas Peppes, Correct! book reports. In order to complete one carpet replacement, Jack will have to give up the time it would take him to complete 0.25 of a book report (1 divided by 4). Mary Suiter, Business Relationship Manager: That is incorrect. He is thinking of quitting his job to pursue a medical degree. If you invest in the high-tech common stock, what; is the opportunity cost of this choice? Use the information in the table below to calculate the opportunity costs for Jack and Andy in the questions that follow. Check Answer: That is incorrect. • Some smelters have requirements for complete anode Given the time associated with each task, if both Jack and Andy repair a That is correct. What is the opportunity cost to him of the carpet? Barb Flowers Social Studies Teacher, Joe Totherow as Jack B. Andy, because Jack has the absolute advantage. 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. Now we can limit our risk. That is incorrect. That is incorrect. I’d buy your entire inventory and sell it at today’s price of $5 a pound and make a killing. shoveling one driveway. Nicholas Peppes, Caroline has $15,000 worth of stock she can sell now for $20,000. If the asset in question has been damaged, then the replacement cost relates to the pre-damaged condition of the asset. Mary Suiter, Business Relationship Manager: What is Jack's opportunity cost for carpet replacement? The cost to replace … Emily Smith Atlanta, Georgia, Brian Voss, D) Jack specializes in the production of soda. him to repair a car. What is Andy's opportunity cost for writing a book report? Replacement cost is the price that an entity would pay to replace an existing asset at current market prices with a similar asset. • Replacement products must have the capability of being installed quickly, since shutting down the smelting pot carries a high opportunity cost. Libertyville, Illinois. Mark Kunzelmann as The Narrator 2-10. The starting price is around $ 93,000 for a new unit, with used models ranging from around $43,000 to $89,000. driveways. B. Andy, because Jack has the absolute advantage. In your own words, describe the life-cycle cost. One car model costs $12,000 & costs and average of $.10 to maintain. Social Studies Teacher, Date ate 3/4 of one pizza, Jenny ate 1/8 of a pizza, Danny ate 1/4 of a … Our global brands are redefining the next generation experience that connect, automate, and … Before discussing comparative advantage, let's practice determining opportunity costs. C) Jack and Jill produce beyond their PPF. What is the opportunity cost of one bushel of wheat in France? (Input your answer as a decimal instead of fraction where applicable. 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. This includes costs for the carpet cleaning (or replacement), appliance cleaning (or replacement), painting, and any other miscellaneous costs related directly to the unit in question. Economics Professor, two-thirds of a garden cultivated. Doing one thing often means that you can't do something else. reasoning. This severely limits the tax benefit of doing capital improvements to buildings. Why is the potential for achieving life-cycle. 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 … They can either devote their time to mowing lawns or cultivating gardens. Check Answer: That is incorrect. Use the information in the table below to calculate the opportunity costs for Jack If Jack quits his job and goes to medical school, the salary he currently earns would be considered what type of cost? and Andy in the questions that follow. The opportunity cost of choosing this option is 10% - 0%, or 10%. What is Jack's opportunity cost for carpet replacement? Andy, on the other hand, could shovel two driveways in the time it takes him to repair a car. The replacement co . The land, labour and capital used in manufacturing the carpet. Ch. That is incorrect. St. Louis, Missouri, Mark Bayles, If Andy fixes a car, he gives up shoveling two In the time he repairs one car, he could have shoveled one driveway. A. R5 000. Barb Flowers Use the keyboard to enter your answer and click "check answer" to find out if you're right. The decision on whether to buy or raise replacement females involves many economic factors. What is Jack's opportunity cost for carpet replacement? Thee same financing rate was used for all four vehicles. That will help you arrive at the correct answer: 0.25 of a book report. I've had my house for 3 years and hadn't purchased a decent fire extinguisher. Clayton, Missouri, Eva Johnston, Decisions typically involve constraints such as time, resources, rules, social norms and physical realities. Replacement products must have the capability of being installed quickly, since shutting down the smelting pot carries a high opportunity cost. A)out of pocket B)historical cost C)opportunity cost D)replacement cost . 13 - Define total cost, average total cost, and... Ch. 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. Divide the amount of time that it takes Jack to write a book report by the amount of time that it takes him to replace the carpet in one room. Andy, on the other hand, could shovel two driveways in the time it takes Libertyville High School, Jack currently works for a law firm full time and earns $60,000 a year. What is Jack's opportunity cost of cultivating a garden? Economics Professor, Andy fixed one car. Most homeowners spend between $12,800 and $21,200 for the average kitchen renovation. 13 - What is marginal product, and what does it mean if... 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. Hours needed to produce one unit Ukuleles Surfboards Jack 12 4 Jill 25 5 11. 13 - Draw a production function that exhibits... Ch. Refer to Table 2-2. Jack has to have the lower opportunity cost when repairing b. Table 2-2 shows the output per day of two gardeners, George and Jack. 44) The figure above shows the production possibilities frontiers for the United Kingdom and France. Medical school will cost him $100,000 per year. Federal Reserve Bank of Atlanta, What is Jack’s opportunity cost of … Usually, the useful life of a capital expenditure on a residential rental is 27.5 years and the life of a capital expenditure on a commercial property is 39 years. 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