Problem
Conceptual questions.
(a) GLS Ch7 P6. A Toyota Camry costs $19,600 and has an average gas mileage of 27 mpg. A Toyota Prius costs $23,000 and has an average gas mileage of 50 mpg. Assuming gas costs $4 per gallon, generate total cost equations as a function of miles driven for each of these cars and identify the fixed and variable costs. How many miles do you have to drive before the two cars have the same total cost?
(b) GLS Ch7 P2. Casey is an expert poker player and can make $35 an hour playing poker online. On Saturday Casey goes to a local tournament with a $15 entry fee. He plays for four hours and wins first place, taking home the $150 prize. Did Casey make an economic profit at the tournament?
(c) GLS Ch7 P7. Philo T. Farmsworth is a corn farmer with a 40-acre tract of land. Each acre can produce 100 bushels of corn. The cost of planting the tract in corn is $20,000, and the cost of harvesting the corn is $10,000. In May, when corn is selling for $10 per bushel, Philo plants his crop. In September the price of corn has fallen to $2 per bushel. What should Philo do? Explain, assuming that there are no costs involved with bringing the corn to market to sell. (Assume that he planted the full tract of land.)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.