How is the concept of a normal return on investment related to the distinction between business and economic profit?

Individual problem 3-1: You won a free ticket to see a Bruce Springsteen concert (assume the ticket has no resale value). U2 has a concert the same night, and this represents your next-best alternative activity.

The tickets to the U2 concert costs $80, and on any particular day, you would be willing to pay up to $100 to see this band.

Assume that they are no additional costs of seeing either show. Based on the information presented here, what is the opportunity cost of seeing Bruce Springsteen?

Individual problem 3-3: Due to the housing bubble, many houses are now selling for much less than their selling price just two or three years ago.

There is evidence that homeowners with virtually identical houses tend to ask more if they paid more for the house. What fallacy are they making?

How would you react to a sales manager's announcement that he or she has in place a marketing program to maximize sales?

Processing Insurance Claims: Your insurance firm process claims through its newer, larger high-tech facility and its older, smaller low-tech facility.

Each month, the high-tech facility handles 10,000 claims, incurs $100,000 in fixed costs and $100,000 in variable costs.

Each month, the low-tech facility handles 2,000 claims, incurs $16,000 in fixed costs and $24,000 invariable costs. If you anticipate a decrease in the number of claims, where will you lay off workers?