微观经济学原理曼昆英文.ppt

微观经济学原理曼昆英文;In this chapter, look for the answers to these questions:;TEN PRINCIPLES OF ECONOMICS;0;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;You are selling your 1996 car. You have already spent $1000 on repairs. At the last minute, the transmission dies. You can pay $600 to have it repaired, or sell the car “as is.” In each of the following scenarios, should you have the transmission repaired? Explain. A. Blue book value is $6500 if transmission works, $5700 if it doesn’t B. Blue book value is $6000 if transmission works, $5500 if it doesn’t;Cost of fixing transmission = $600 A. Blue book value is $6500 if transmission works, $5700 if it doesn’t Benefit of fixing the transmission = $800($6500 – 5700). It’s worthwhile to have the transmission fixed. B. Blue book value is $6000 if transmission works, $5500 if it doesn’t Benefit of fixing the transmission is only $500. Paying $600 to fix transmission is not worthwhile.;Observations: The $1000 you previously spent on repairs is irrelevant. What matters is the cost and benefit of the marginal repair (the transmission). The change in incentives from scenario A to scenario B caused your decision to change. ;0;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;0;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;TEN PRINCIPLES OF ECONOMICS;CHAPTER SUMMARY;CHAPTER SUMMARY;CHAPTER SUMMARY