Kamryn is deciding between three potential activities on Saturday evening: 1) Staying at home and watching her favorite television show, an activity that she values at $18 and that entails no out-of- pocket costs. 2) Going to the movies with her sister to see the latest blockbuster action film, an activity she values at $30 and that entails $15 in out-of-pocket costs. 3) Going out to dinner with her best friend, an activity she values at $40 and that entails $23 in out-of-pocket costs. a. Which activity should Kamryn choose? Staying at home and watching her favorite show O Going out to dinner with her best friend O Going to the movies with her sister b. What is Kamryn's opportunity cost of going to the movies? Instructions: If you are entering a negative number, be sure to include a negative sign (-). $ c. Relative to her next best alternative, what is Kamryn's economic surplus from going to the movies? Instructions: If you are entering a negative number, be sure to include a negative sign (-).

Kamryn is deciding between three potential activities on Saturday evening: 1) Staying at home and watching her favorite television show, an activity that she values at $18 and that entails no out-of- pocket costs. 2) Going to the movies with her sister to see the latest blockbuster action film, an activity she values at $30 and that entails $15 in out-of-pocket costs. 3) Going out to dinner with her best friend, an activity she values at $40 and that entails $23 in out-of-pocket costs. a. Which activity should Kamryn choose? Staying at home and watching her favorite show O Going out to dinner with her best friend O Going to the movies with her sister b. What is Kamryn's opportunity cost of going to the movies? Instructions: If you are entering a negative number, be sure to include a negative sign (-). $ c. Relative to her next best alternative, what is Kamryn's economic surplus from going to the movies? Instructions: If you are entering a negative number, be sure to include a negative sign (-).

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

Kamryn is deciding between three potential activities on Saturday evening:
1) Staying at home and watching her favorite television show, an activity that she values at $18 and that entails no out-of-
pocket costs.
2) Going to the movies with her sister to see the latest blockbuster action film, an activity she values at $30 and that entails
$15 in out-of-pocket costs.
3) Going out to dinner with her best friend, an activity she values at $40 and that entails $23 in out-of-pocket costs.
a. Which activity should Kamryn choose?
b. What is Kamryn's opportunity cost of going to the movies?
Instructions: If you are entering a negative number, be sure to include a negative sign (-).
$
Staying at home and watching her favorite show
O Going out to dinner with her best friend
Going to the movies with her sister
$
c. Relative to her next best alternative, what is Kamryn's economic surplus from going to the movies?
Instructions: If you are entering a negative number, be sure to include a negative sign (-).

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