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Calculating Net Benefit of a Project
A freelance designer is considering a project that will pay them $1,200. To complete the project, they will need to purchase a software license for $150 and spend $50 on stock images. Additionally, accepting this project means they must turn down another small project that would have paid them $300. Calculate the designer's net benefit for taking on the main project.
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CORE Econ
Economics
Social Science
Empirical Science
Science
Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.2 Technology and incentives - The Economy 2.0 Microeconomics @ CORE Econ
Application in Bloom's Taxonomy
Cognitive Psychology
Psychology
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A company is considering two marketing campaigns. Campaign A has total expected benefits valued at $50,000 and total costs of $15,000. Campaign B has total expected benefits valued at $65,000 and total costs of $32,000. To achieve the highest possible pay-off, which campaign should the company choose?
Evaluating a Business Decision
Calculating Net Benefit of a Project
An individual decides to purchase a new video game. They calculate that the net benefit, or pay-off, from this decision is $20. If the total benefit they receive from the enjoyment and entertainment of the game is valued at $80, what was the total cost of the video game?
A student is considering a weekend trip. They value the enjoyment and relaxation from the trip at $300. The direct costs for the trip are a $150 hotel room and $50 for gas. To go on the trip, they must also miss a weekend work shift where they would have earned $120.
Statement: The pay-off from taking the weekend trip is positive.
Investment Decision for a Cafe
Evaluating a Personal Finance Decision
Evaluating a Job Offer Decision
A rational decision-maker analyzes the pay-off of an action before proceeding. For each of the following independent scenarios, calculate the net benefit by subtracting total costs from total benefits, and match the scenario to its correct net benefit value.
A farmer is considering planting a new crop. The total expected benefits from the harvest are valued at $8,500. The total costs for seeds, fertilizer, and labor amount to $3,200. The net benefit, or pay-off, from planting this new crop is $____.
Calculating Net Benefit of a Project
An individual decides to purchase a new video game. They calculate that the net benefit, or pay-off, from this decision is $20. If the total benefit they receive from the enjoyment and entertainment of the game is valued at $80, what was the total cost of the video game?