Troy wins a prize of a McDonald's Restaurant $10gift certificate. He can trade the prize in for amystery envelope. He gave up the $10 giftcertificate to open the mystery envelope thatcontained a $7 McDonald's Restaurant giftcertificate. Which statement is true?a. The opportunity cost of choosing the mysteryenvelope is $17.b. The opportunity cost of choosing the mysteryenvelope is $3.c. None of the supplied solutions are correct.d. There is no opportunity cost with choosing themystery envelope.e. The opportunity cost of choosing the mysteryenvelope is $10.

Opportunity cost is the cost that a person sacrifices when they choose one option over another. This…

Troy wins a prize of a McDonald's Restaurant $10 gift certificate. He can trade the prize in for a mystery envelope. He gave up the $10 gift certificate to open the mystery envelope that contained a $7 McDonald's Restaurant gift certificate. Which statement is true?

Troy wins a prize of a McDonald's Restaurant $10 gift certificate. He can trade the prize in for a mystery envelope. He gave up the $10 gift certificate to open the mystery envelope that contained a $7 McDonald's Restaurant gift certificate. Which statement is true?

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

Troy wins a prize of a McDonald's Restaurant $10
gift certificate. He can trade the prize in for a
mystery envelope. He gave up the $10 gift
certificate to open the mystery envelope that
contained a $7 McDonald's Restaurant gift
certificate. Which statement is true?
a. The opportunity cost of choosing the mystery
envelope is $17.
b. The opportunity cost of choosing the mystery
envelope is $3.
c. None of the supplied solutions are correct.
d. There is no opportunity cost with choosing the
mystery envelope.
e. The opportunity cost of choosing the mystery
envelope is $10.

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