The calculation of the opportunity cost .

Question

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Answer 1

Question

Chapter 10, Problem 1SPA

To determine

The calculation of the opportunity cost.

Expert Solution & Answer

Explanation of Solution

The opportunity cost of a firm includes the cost of the resources owned by the firm, the cost of resources supplied by the firm’s owner, and the cost of using the resources bought in the market.

The opportunity cost of JJVB includes the following as mentioned in table 1:

Table 1

Particulars	Cost (in $)
Wages paid	20,000
Interest forgone on $50,000 which could be used to pay for mortgage loan	3,000 (50,000×6100)
Income forgone	30,000
Leisure forgone	15,000 (30×500)
Depreciation cost of equipment	2,000 (30,000−28,000)
Goods and services bought from other firms	10,000
Total opportunity cost	80,000

The total opportunity cost of JJVB is $80,000.

Economics Concept Introduction

Opportunity cost: The opportunity cost is the cost of the foregone alternative, that is, the loss of other alternative when one alternative is chosen.

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Recent research indicates potential health benefits associated with coffee consumption, including a potential reduction in the incidence of liver disease. Simultaneously, new technology is being applied to coffee bean harvesting, leading to cost reductions in coffee production. How will these developmentsaffect the demand and supply of coffee? How will the equilibrium price and quantity of coffee change? Use both words and graphs to explain.

Answer 2

Question

Chapter 10, Problem 1SPA

To determine

The calculation of the opportunity cost.

Expert Solution & Answer

Explanation of Solution

The opportunity cost of a firm includes the cost of the resources owned by the firm, the cost of resources supplied by the firm’s owner, and the cost of using the resources bought in the market.

The opportunity cost of JJVB includes the following as mentioned in table 1:

Table 1

Particulars	Cost (in $)
Wages paid	20,000
Interest forgone on $50,000 which could be used to pay for mortgage loan	3,000 (50,000×6100)
Income forgone	30,000
Leisure forgone	15,000 (30×500)
Depreciation cost of equipment	2,000 (30,000−28,000)
Goods and services bought from other firms	10,000
Total opportunity cost	80,000

The total opportunity cost of JJVB is $80,000.

Economics Concept Introduction

Opportunity cost: The opportunity cost is the cost of the foregone alternative, that is, the loss of other alternative when one alternative is chosen.

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Answer 3

Question

Chapter 10, Problem 1SPA

To determine

The calculation of the opportunity cost.

Expert Solution & Answer

Explanation of Solution

The opportunity cost of a firm includes the cost of the resources owned by the firm, the cost of resources supplied by the firm’s owner, and the cost of using the resources bought in the market.

The opportunity cost of JJVB includes the following as mentioned in table 1:

Table 1

Particulars	Cost (in $)
Wages paid	20,000
Interest forgone on $50,000 which could be used to pay for mortgage loan	3,000 (50,000×6100)
Income forgone	30,000
Leisure forgone	15,000 (30×500)
Depreciation cost of equipment	2,000 (30,000−28,000)
Goods and services bought from other firms	10,000
Total opportunity cost	80,000

The total opportunity cost of JJVB is $80,000.

Economics Concept Introduction

Opportunity cost: The opportunity cost is the cost of the foregone alternative, that is, the loss of other alternative when one alternative is chosen.

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Answer 4

Question

Chapter 10, Problem 1SPA

To determine

The calculation of the opportunity cost.

Expert Solution & Answer

Explanation of Solution

The opportunity cost of a firm includes the cost of the resources owned by the firm, the cost of resources supplied by the firm’s owner, and the cost of using the resources bought in the market.

The opportunity cost of JJVB includes the following as mentioned in table 1:

Table 1

Particulars	Cost (in $)
Wages paid	20,000
Interest forgone on $50,000 which could be used to pay for mortgage loan	3,000 (50,000×6100)
Income forgone	30,000
Leisure forgone	15,000 (30×500)
Depreciation cost of equipment	2,000 (30,000−28,000)
Goods and services bought from other firms	10,000
Total opportunity cost	80,000

The total opportunity cost of JJVB is $80,000.

Economics Concept Introduction

Opportunity cost: The opportunity cost is the cost of the foregone alternative, that is, the loss of other alternative when one alternative is chosen.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1SPA

To determine

The calculation of the opportunity cost.

Expert Solution & Answer

Explanation of Solution

The opportunity cost of a firm includes the cost of the resources owned by the firm, the cost of resources supplied by the firm’s owner, and the cost of using the resources bought in the market.

The opportunity cost of JJVB includes the following as mentioned in table 1:

Table 1

Particulars	Cost (in $)
Wages paid	20,000
Interest forgone on $50,000 which could be used to pay for mortgage loan	3,000 (50,000×6100)
Income forgone	30,000
Leisure forgone	15,000 (30×500)
Depreciation cost of equipment	2,000 (30,000−28,000)
Goods and services bought from other firms	10,000
Total opportunity cost	80,000

The total opportunity cost of JJVB is $80,000.

Economics Concept Introduction

Opportunity cost: The opportunity cost is the cost of the foregone alternative, that is, the loss of other alternative when one alternative is chosen.

Answer 6

Chapter 10, Problem 1SPA

To determine

The calculation of the opportunity cost.

Expert Solution & Answer

Explanation of Solution

The opportunity cost of a firm includes the cost of the resources owned by the firm, the cost of resources supplied by the firm’s owner, and the cost of using the resources bought in the market.

The opportunity cost of JJVB includes the following as mentioned in table 1:

Table 1

Particulars	Cost (in $)
Wages paid	20,000
Interest forgone on $50,000 which could be used to pay for mortgage loan	3,000 (50,000×6100)
Income forgone	30,000
Leisure forgone	15,000 (30×500)
Depreciation cost of equipment	2,000 (30,000−28,000)
Goods and services bought from other firms	10,000
Total opportunity cost	80,000

The total opportunity cost of JJVB is $80,000.

Economics Concept Introduction

Opportunity cost: The opportunity cost is the cost of the foregone alternative, that is, the loss of other alternative when one alternative is chosen.

Answer 7

Chapter 10, Problem 1SPA

To determine

The calculation of the opportunity cost.

Answer 8

Expert Solution & Answer

Explanation of Solution

The opportunity cost of a firm includes the cost of the resources owned by the firm, the cost of resources supplied by the firm’s owner, and the cost of using the resources bought in the market.

The opportunity cost of JJVB includes the following as mentioned in table 1:

Table 1

Particulars	Cost (in $)
Wages paid	20,000
Interest forgone on $50,000 which could be used to pay for mortgage loan	3,000 (50,000×6100)
Income forgone	30,000
Leisure forgone	15,000 (30×500)
Depreciation cost of equipment	2,000 (30,000−28,000)
Goods and services bought from other firms	10,000
Total opportunity cost	80,000

The total opportunity cost of JJVB is $80,000.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Opportunity cost: The opportunity cost is the cost of the foregone alternative, that is, the loss of other alternative when one alternative is chosen.

Answer 12

Ch. 10.1 - Prob. 1RQ Ch. 10.1 - Prob. 2RQ Ch. 10.1 - Prob. 3RQ Ch. 10.1 - Prob. 4RQ Ch. 10.1 - Prob. 5RQ Ch. 10.2 - Prob. 1RQ Ch. 10.2 - Prob. 2RQ Ch. 10.2 - Prob. 3RQ Ch. 10.2 - Prob. 4RQ Ch. 10.3 - Prob. 1RQ

The calculation of the opportunity cost .

The calculation of the opportunity cost.

Explanation of Solution

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