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Government contracts

Officers of five large building-materials companies meet and agree that none of them will submit bids on government contracts lower than an agreed-upon level. This is an example of a. price-fixing.b. vertical restriction.c. a tying contract.d. an interlocking directorate.

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Fitness center

Every month, Frank pays an $80 membership fee at a fitness center so he can avail himself of the unlimited use of its facilities. On average, he goes to the center 10 times a month. What is the average cost of each trip he makes to the center? What is the marginal cost of an

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Behavioral Science

For each of the following situations, identify the full cost (opportunity cost) involved: a. Monique quits her $50,000 per-year job as an accountant to become a full-time volunteer at a women’s shelter. b. The Agrizone Corporation invests $12 million in a new inventory tracking system. c. Taylor receives $500 from his grandmother for his birthday

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Small mountainous nations

The countries of Orion and Scorpius are small mountainous nations. Both produce granite and blueberries. Each nation has a labor force of 800. The following table gives production per month for each worker in each country. Assume productivity is constant and identical for each worker in each country. a. Which country has an absolute advantage

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Opportunity cost

A study presented at the annual congress of the European Economic Association in Mannheim, Germany, concluded that retired people are 10 percent more likely to exercise frequently than people who are working. Use the concept of opportunity cost to explain this fact.

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Carpet production

A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms: These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. a. Using the data in the table, graph the ppf (with carpet on the

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