Microeconomics: Theory and Applications with Calculus, 4e

Exercises

All exercises are available on MyEconLab; ${*}^{}=\text{answer}$ appears at the back of this book; $\mathbf{\text{M}}=\mathit{\text{mathematical}}$ problem.

1. Measuring Costs 

1. 1.1 You have a ticket to go to a concert by one of your favorite groups, the Hives, which you cannot resell. However, you can buy a ticket for $30 to attend a talk by Steven Colbert, at the same time as the concert. You are willing to pay up to $90 to hear Colbert. Given that you incur no other costs involved in attending either event, what is your opportunity cost of attending the Hives concert? (Hint: See Solved Problem 7.1 and the Application “The Opportunity Cost of an MBA.”)

2. 1.2 Many corporations allow CEOs to use their firm’s corporate jet for personal travel. The Internal Revenue Service (IRS) requires ...