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Harry Is a Computer Company Executive, Earning $200 Per Hour

question 71

True/False

Harry is a computer company executive, earning $200 per hour managing the company and promoting its products. His daughter Quinn is a high school student, earning $6 per hour helping her grandmother on the farm. Harry's computer is broken. He can repair it himself in one hour. Quinn can repair it in 10 hours. Harry's opportunity cost of repairing the computer is lower than Quinn's.


Definitions:

Surplus

An excess of something, especially a quantity of a commodity or financial instrument that exceeds what is needed or used.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to market balance.

Equilibrium Quantity

The amount of goods or services that is supplied and demanded at the equilibrium price.

Price Floor

A minimum price set by the government for certain goods and services, which cannot legally be lowered.

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