Calvin Buys Newspapers and Delivers Them (By Bike) to His

question 13

Essay

Calvin buys newspapers and delivers them (by bike) to his customers' houses while Hobbes sells lemonade at his lemonade stand.One day they compare notes and find that Calvin, after paying for the newspapers and the maintenance on his bike, clears $5 per hour while Hobbes, after paying for the lemonade ingredients and upkeep of his lemonade stand, clears $4.50 per hour.The newspaper and lemonade businesses are the only possible trades for Calvin and Hobbes.
a.If Calvin and Hobbes are identical, how much economic profit (per hour) is each making?
b.Suppose Hobbes is slower on his bike than Calvin -- and he could only deliver half as many newspapers per hour.What's his economic profit in the lemonade business?

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Definitions:

Intervention

Actions or activities designed to modify a process, situation, or behavior to improve the outcome.

Short-term Objectives

Specific, measurable goals set to be achieved in the near future, serving as stepping stones towards long-term aims.

Organized Collection

A systematically arranged group of items that are maintained and managed according to certain criteria or for specific purposes.

Research Procedures

Specific methods and practices used in conducting scientific or scholarly investigation.