Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / You are at a carnival trying to calculate how many rides you should take on the merry-go-round

You are at a carnival trying to calculate how many rides you should take on the merry-go-round

Economics

You are at a carnival trying to calculate how many rides you should take on the merry-go-round. According to the Cost-Benefit Principle, how many rides should you take? $0 Rides Total Cost Total Benefit 0 $0 1 $10 $12 2 $20 $20 3 $30 $25 14 $40 $27 15 $50 $29 16 $60 $30 5 0 6 0 O ??? 2 Question 4 1 pts Chuck divides his time between catching fish and selling printers. If Chuck can increase the amount of fish he catches without having to decrease the amount of printers he sells, then he is producing at an: unattainable point efficient point inefficient point O ideal point

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer 3. ( B ) i.e 1.  

Reason : According to cost benefit principle a person should take an action if and only if the extra benefits from taking the action it is greater than the extra cost. So here when 0 ride is taken total cost is 0 an total benefit is also 0. when taken 1 ride the total cost is 10 and total benefit is 12. So the benefit form 1 ride is greater than 0. That is 12>10. If 2 rides is taken then then extra cost is 10 and extra benefit is 8 so here extra benefit is smaller than the extra cost so we should not take 2 ride and so on if 3 ride is taken extra benefit is 5 and extra cost is 10 so will not take 3 ride and so on..

Answer 4. ( B). i.e efficient point.

Reason : in economics term efficient point is a point at which a consumer will produce effectively within the given time , technology, and resources so here when production of fish is not increased at that time chunk is producing inefficiently. Now if he increase his productions without decreasing the selling of printers then he is producing efficient or at efficient point. Ideal point is a point which lies outside the the economy which here is not possible.