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ECO111 Assignment1

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445 views2 pages

ECO111 Assignment1

Uploaded by

Nguyễn Hoa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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ECO111 Microeconomics

Class:
Handed out:
Submission due:
Format: pdf file
Submission mode: Softcopy
Email to: tamnt17@fe.edu.vn

Student Information
Name: NGUYỄN THỊ HOA Roll number: HS140007
Room No: P204 Class: IBA_BA1403

FOR TEACHER ONLY


MARK MARKED BY Signature of Proctor
(NAME AND SIGNATURE)

Individual Assignment 01

Question 1.

1. What is your opportunity cost of each of the following? (5 points)


a. Attending your next economics class meeting.
b. Skipping your next economics class meeting.
c. Taking an all expenses paid trip to the Bahamas for a week during this semester.

2. The local pizza restaurant is advertising a special. If you buy one individual sized pizza,
you get the next one at 25% off, the third one for 50% off and the fourth one for 75% off.
Your marginal benefit from eating pizza is shown in the table below. If the price of a pizza
is $6, how many should you buy? (3 points)

No of pizzas MB (Marginal Benefit)


0 0
1 7
2 4
3 2
4 1

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3. The workers in a factory currently earn $120 for a 39 – hour week. The management
offers them a choice between either a straight 10% wage increase or an increase in the
weekly wage to $125 coupled with a reduction in hours from 39 to 37 hours. What is the
opportunity cost to each worker of opting for the 37 – hour week? (2 points)

ANSWER
1. A. The opportunity cost when I attending your next economics class meeting, is not
just the wake up early, some other activities and jobs but also the time for other
activites is lost, the value of the next best alternative
B. When I skipping your next economics class meeting, is not just that subject but
also economic knowledge and foregone tuition fee, the value of attending the class.
C. When I taking an all expenses paid trip to the Bahamas for a week during this
semester, is not just the all expenses paid trip, but also the value of the time you spend in
the trip, attending some classes,..

2. If the price of a pizza in $6, the nest one of 25% off will be:
$6 – ($6*25%) = $4.5
The third one for 50% off will have price is:
$6 – ($6*50%) = $3
The fourth on for 75% off will have price is:
$6 – ($6*75%) = $1.5
No of pizzas MB (Marginal Benefit) MC
0 0 0
1 7 6
2 4 4.5
3 2 3
4 1 1.5
Base on the table we can see marginalbenefit exceeds marginal cost for only the
first pizza (7>6). Therefore, I should buy one.
3. -Case 1: workers choose a straight 10% wage increase. Their new wage for a 39 –
hour week will be:$120 + ($120*10%) = $132
-Case 2: Workers choose an increase in the weekly wage to $125 coupled with a
reduction in hours from 39 to 37 hours.
Therefore $132 for a 39-hour week is the opportunity cost to each worker ofopting for
the 37 – hour week. Case 1 will earn more money than case 2

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