Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 1, Problem 6Q
(a)
To determine
Definition of
(b)
To determine
The opportunity cost of dropping a year after high school and to understand the rationality of their action.
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Microeconomics (2nd Edition) (Pearson Series in Economics)
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- Rob decided to drive to school rather than take the school bus. What was the opportunity cost of Rob’s decision?arrow_forwardwhat are the opportunity cost in the following questions: a. buying a high-priced flat screen TV vs. a moderately- priced one. b. deciding whether to buy a gift online or go to an actual store to buy it. c. A firm trying to decide whether to allocate part of its budget to prototyping and testing and new product X. d. firm considering investing in checkout automation technology.arrow_forwardhow do you deal with opportunity costarrow_forward
- Buffy is thinking about opening an amulet store. She estimates that it would cost $350,000 per year to rent the location and buy the merchandise. In addition, she would have to quit her $80,000 per year job as a vampire hunter. Answer B -E please i know the answer to A. A).Define opportunity cost. B).What is Buffy's opportunity cost of running the store for a year? C).Buffy thinks she can sell $400,000 worth of amulets in a year. What would her accountant consider the store's profit? D).Should Buffy open the store? Explain. E).How much revenue would the store need to generate for Buffy to earn positive economic profit?arrow_forwardWhat are Opportunity Costs? How is it different from Cost Benefits? (2 PAGES)arrow_forwardWhat is the opportunity cost of going to a movie? the price of the ticket the price of the ticket plus the cost of any soda and popcorn you buy at the theatre the total cash expenditure needed to go to the movie plus the value of your time zero, as long as you enjoy the movie and consider it a worthwhile use of time and moneyarrow_forward
- How do you define opportunity costarrow_forwardSuppose that, in starting a new business, you leave your current job at a healthcare company that pays you $5,000 per month (including all benefits). After one year, the start-up starts making a profit of $6,000 per month. How long will it take you to be economically profitable, explain using the concept of opportunity cost in this context.arrow_forwardShannon has decided to spend less time on social media because she needs to improve her grades. What might be the opportunity cost of her decision?arrow_forward
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