13. A construction crew (that is currently unemployed and receiving $10/hr. in benefits) to fix a road. The cement is purchased from a rip-off monopolist that charges $10/bag more than anyone else. The cost estimate provided by the contractor's accountant is given in the table below: Price $50 ITEM Labor Cement Project Total Quantity 1,000 hours 500 Wage $20/hour The opportunity cost of the project is A) $45,000. B) $40,000. C) $35,000 D) $30,000. E) $1.414 Total $20,000 $25,000 $45,000

13. A construction crew (that is currently unemployed and receiving $10/hr. in benefits) to fix a road. The cement is purchased from a rip-off monopolist that charges $10/bag more than anyone else. The cost estimate provided by the contractor's accountant is given in the table below: Price $50 ITEM Labor Cement Project Total Quantity 1,000 hours 500 Wage $20/hour The opportunity cost of the project is A) $45,000. B) $40,000. C) $35,000 D) $30,000. E) $1.414 Total $20,000 $25,000 $45,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

13. A construction crew (that is currently unemployed and receiving $10/hr. in
benefits) to fix a road. The cement is purchased from a rip-off monopolist
that charges $10/bag more than anyone else. The cost estimate provided by
the contractor's accountant is given in the table below:
Price
Quantity
1,000 hours
500
ITEM
Labor
Cement
Project Total
The opportunity cost of the project is
A) $45,000.
B) $40,000.
C) $35,000
D) $30,000.
E) $1.414
Wage
$20/hour
$50
Total
$20,000
$25,000
$45,000

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