The price of DVDs (D) is $20 and the price of CDs (C) is $10.Philip has a budget of $100 to spend on the two goods. Suppose hehas already bought one DVD and one CD. In addition,there are 3 more DVDs and 5 more CDs he would like to buy. a. Given the above prices and income, draw his budget line on agraph with CDs on the horizontal axis and correctly identify whereis current market basket lies. b. Considering what he has already purchased, identify all thepossible market baskets under the assumption there are no fractionsof DVDs or CDs. . . .
Sue can do her accounting assignment by using: a personal computer; a pocket calculator; a pocket calculator and a pencil and paper; or a pencil and paper. With a PC, Sue completes the job in half an hour; with a pocket calculator, it takes 4 hours; with a pocket calculator and with a pencil and paper, it takes 5 hours; and with a pencil and paper, it takes 14 hours. The PC and its software cost $2,000, the pocket calculator costs $15, and the pencil and paper cost $3.
a. Which, if any, of the methods is technologically efficient?
b. Which methods is economically efficient if Sue’s wage rate is
(i) $10 an hour?
(ii) $20 an hour?
(iii) $50 an hour?