Answer:
These are the options for the question:
A. They should be more willing to tear down the $5 million stadium, because it cost less to build.
B. They should be more willing to tear down the $50 million stadium, because it cost more to build.
C. The cost to build the old stadium shouldn’t be considered.
And this is the correct answer:
A. They should be more willing to tear down the $5 million stadium, because it cost less to build.
Explanation:
City A will likely be more willing to tear down its old stadium because it costed $5 million to build. City B, on the other hand, will have to think twice because a stadium that costed $50 billion to build could have more value than it seems, or the City could simply not have enough money to build a better new stadium (something that would probably cost more than $50 billion to do).
Answer:
The correct answer is letter "B": attention.
Explanation:
Attention is the mental activity by which individuals focus their attention on a given subject they are dealing with. By doing this, people leave behind any other situation around to concentrate only on the task they are given. This scenario takes place in complicated exercises that push people's knowledge to the limit or when the exercise is of interest or important for the individual.
As long as the marginal benefits are higher than the marginal costs you are better off continuing the activity.
Consider the example of eating pizza. Each slice of pizza gives you happiness and helps fill you up (marginal benefit), but each slice also has lots of calories and fat (marginal cost). As long as you are still hungry and getting enjoyment from eating, you should keep eating. But once you reach the point where you are too full then you should stop, because the costs now outweigh the benefits.
Answer: $45,600
Explanation:
The Implicit cost is the opportunity cost. In other words, it is cost that was incurred because a revenue opportunity was sacrificed.
Sam sacrificed his salary as a pilot, his interest payment and the building he could be renting out.
His total implicit cost is;
= 40,000 + (10,000 * 6%) + 5,000
= $45,600
