MGEA02H3 Lecture Notes - Opportunity Cost, Coase Theorem, Normal Good

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lemonsqueaky

13 Aug 2022

School

UTSC

Department

Economics for Management Studies

Course

MGEA02H3

Professor

Jack Parkinson

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MGEA02H3 Full Course Notes

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Assignment 1 possible & efficient unobtainable possible but not efficient. A farmer produces both beans and corn on her farm. If she must give up 16 bushels of corn to be able to get 6 bushels of beans, then her opportunity cost of 1 bushel of beans is. Actions intended to make economic outcomes fairer may cause efficiency to decrease . Suppose that an economy consists of only two individuals. Jeremy has available to spend on goods. He decides to purchase worth of produce from chen in current quarter. No other economic activity takes place during the current quarter. Marginal analysis : the examination ah the costs & benefit ah certain. Opportunity cost : what you give up in order to get a particular item. _ demand curve : represents the change in the price ah a relationships between the price ah a good & quantity demanded . A product results in movement along the demand curve .

Related Questions

Suppose a gardener produces both green beans and corn in her garden. If she must give up 14 bushels of corn to get 5 bushels of green beans, then her opportunity cost of 1 bushel of green beans is _____.

tanrhinoceros524

Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa, the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska, the opportunity cost of producing 3 bushels of wheat is 1 bushel of corn. At present, Iowa produces 100 million bushels of wheat and 600 million bushels of corn, while Nebraska produces 100 million bushels of corn and 600 million bushels of wheat.

a. Explain how, with trade, Nebraska can end up with 120 million bushels of wheat and 600 million bushels of corn while Iowa can end up with 120 million bushels of corn and 600 million bushels of wheat.

pearspider709

Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. At present, Iowa produces 20 million bushels of wheat and 120 million bushels of corn, while Nebraska produces 20 million bushels of corn and 120 million bushels of wheat. a) Explain how, with trade, Nebraska can end up with 40 million bushels of wheat and 120 million bushels of corn while Iowa can end up with 40 million bushels of corn and 120 million bushels of wheat. b) If the states ended up with the numbers given in (a), how much would the trader get?

tanfly308

MGEA02H3 Lecture Notes - Opportunity Cost, Coase Theorem, Normal Good

MGEA02H3 Full Course Notes

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