econ quiz 7 study video

a rational seller will sell another unit of output

if the cost of making another unit is less than the revenue gained from selling another unit

what is the lowest price per window that would induce John to spend at least one hour per day cleaning windows?

$1

Johns benefit from his first hour cleaning windows is:

$14

what is the lowest price per window that John would be willing to accept to spend 4 hours per day cleaning windows?

$3.50

for a given seller, the figure below shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. what is this seller's reservation price for the 250th unit?

$4

The first hour John spends cleaning windows costs him ___ that he could have earned in the grocery store

$7

john is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the business downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day. WHAT IS JOHNS OPPORTUNITY COST OF CLEANING WINDOWS FOR AN HOUR

$7

A second hour cleaning windows will yield additional earnings of

$8

How many hours a day should John spend cleaning windows?

2

if we plot John's opportunity cost per window on the vertical axis and the number of windows cleaned each day on the horizontal axis, we will have John's ___ curve for window cleaning services.

supply

Should John spend a third hour cleaning windows?

No, because the additional amount he would earn is $6, which is less than his opportunity cost of $7