Question

You’ve now looked at how opportunity cost impacts you as a consumer on a small scale. How do you think opportunity cost impacts the decisions of a company like Microsoft or Apple when it comes to choosing what to produce?

Answer 1

@LyricalDevonne

Answer 2

i think that opportunity cost impacts the decisions greatly. i believe that if your going to create a product in the millions then its going to be spendy so it will take alot for the cost to be made up for and to make the product profitable. So with that being said it has to be believed to be profitable.

Answer 3

That was perfect!

Answer 4

haha thank you:)

Answer 5

2. Look at the above graph about the change in the price of gasoline. When the gas was $2.50 a gallon, people bought on average a little over 3 gallons. As the price was cheaper, people bought more, but not significantly more. Would you consider gas in this graphic to be elastic or inelastic? Why?

Answer 6

you still there @LyricalDevonne

Answer 7

inelastic because it because it doesnt spread far across the graph and doesnt have a great range of numbers.

Answer 8

perfect again!!!

Answer 9

2. Look at the above graph about the change in the price of gasoline. When the gas was $2.50 a gallon, people bought on average a little over 3 gallons. As the price was cheaper, people bought more, but not significantly more. Would you consider gas in this graphic to be elastic or inelastic? Why?

Answer 10

for the question before THAT WAS'NT THE RIGHT GRAPH

Answer 11

oh its still the same..

Answer 12

THIS GRAPH IS FOR THE LAST QUESTION

Answer 13

ya it is elastic because its not straight up and down

Answer 14

SuperBowl XLVIII Pricing
By: Patrick Rishe
9/19/2013

“As Matthew Futterman of the Wall Street Journal reported Tuesday, club-level seats in the mezzanine of MetLife Stadium are likely to cost about $2,600, as compared to the $1,250 charged for the top tickets at last year’s Super Bowl in New Orleans.

Additionally, Futterman reported that the next-cheapest set of tickets in the lower bowl of MetLife would cost about $1,500, up from the $950 charged for second-tier seats sold in New Orleans.” The game was a sellout.”

Answer 15

3. Read the article excerpt titled SuperBowl XLVIII Pricing (in part 3 of the application) which compares the price of the 2014 Super Bowl tickets to the 2013 Super Bowl tickets. Answer the below questions.


1. What happened to the cost of Super Bowl tickets between the Super Bowl last year at Met Life Stadium and the one two years ago in New Orleans?


2. What does this tell you about the DEMAND of the tickets? Also, would you say that the tickets are an elastic item or inelastic? Why?


3. In your own personal life, what is an example of an elastic product for you? Of an inelastic product?

Answer 16

@LyricalDevonne aye u still there

Answer 17

1. the cost raised after the Year before had gotten sold out.

2. i would say that the tickets are elastic because the demand for them are astronomical

3. idkCx

Answer 18

wait what about the last one

Answer 19

i don't even know wht those words mean

Answer 20

i dont know the last one haha yaaaa im not that good at this tho hahaCx

Answer 21

it's okay but you did good!

Answer 22

THANKZ!

Answer 23

haha anytime:)

Answer 24

Chipotle-nomics
By: Glenn Singewald
4/2/2013

“In 2011, Chipotle served nearly 100 million pounds of naturally raised meat. That makes it the world's leading natural meat-serving restaurant chain. With great quality and quantities of steak, however, comes great responsibility and risk. Chipotle has built its successful differentiated brand on high-quality food that surpasses the competition, and happily boasts that its "changing fast food" culture for the better by serving humanely raised, antibiotic-free meats.

Yet the same rare meat that Chipotle's success depends upon may threaten its future growth and profitability. Due to price hikes and scarcity, Chipotle's periodically served conventional meat in regional store locations, and warns that it may do so with higher frequency in the near future. Combined with Chipotle's January announcement that it may raise menu prices mid-year (due to natural meat and dairy's cost), the company faces an uphill struggle.

An uphill struggle along the quantity demanded curve, that is. As Chipotle continues to expand faster than small farmers can get into the natural meat business, the company's demanding more of a commodity that's already in short supply, which drives up market prices in the short term. That's why Chipotle's had to consider raising prices as well as serving conventional meat -- the combination of which may deter customers for reasons both economical and personal.

Chipotle's foremost competitors include Yum! Brands' (NYSE: YUM) Taco Bell. In July 2012, Taco Bell debuted a more premium Cantina Bell menu as competition against Chipotle. Offering menu items similar to Chipotle's for about $2 cheaper, Cantina Bell surpasses Taco Bell's standard quality, but does not rival Chipotle -- the menu's website makes no mention of the chicken and steak's production quality, so it's likely conventional (not "natural"). And there’s no organic produce like Chipotle advertises. Will Chipotle's customers, who willingly pay $7-12 for their meals, sacrifice quality for two bucks?”

Answer 25

1. Is the problem that Chipotle faces, as described in this article, a supply problem or a demand problem?

2. What choices does Chipotle have in regards to this problem to address it?


3. If Chipotle does not address this problem properly, what might consumers do instead of eating at Chipotle?


4. For you personally, would you rather spend 9 dollars for a ‘high quality’ meal at Chipotle or ~$6 for a ‘lower quality’ meal at Taco Bell? Why?


5. Pretend for a moment that the avocados, what Chipotle uses to make guacamole, have a very bad harvest this upcoming year. In this scenario….What should Chipotle do to the price of guacamole if demand for the avocados goes up?

Answer 26

@LyricalDevonne