Suppose you have a choice of 3 schools. The Elite School wil…
Suppose you have a choice of 3 schools. The Elite School will give you $140,000 of benefit, and cost you $120,000. The Mid School will give you $60,000 of benefit, and cost you $20,000. The Safe School will give you $30,000 of benefit, but cost you nothing because of scholarships. Based on the economic surplus, which school should you choose to attend? Relevant Equations Below:
Read DetailsLet’s say you own your own farm. Your total revenue is $32,0…
Let’s say you own your own farm. Your total revenue is $32,000 a year, and your explicit costs of equipment, seeds, etc are $15,000. You could also choose to work as a manager making $13,000 a year. What is the Normal Profit of your business?
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