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Concept explainers
(a)
Relevance of
(a)
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Explanation of Solution
The opportunity cost of going home is lost the time that can be used for other purposes like studying.
Opportunity cost: Opportunity cost is the best alternative costs that forgo or give up when a decision or choice has to be taken.
(b)
Relevance of opportunity cost.
(b)
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Explanation of Solution
Opportunity cost of riding bicycle 20 miles every day is alternative use of that time.
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
(c)
Relevance of opportunity cost.
(c)
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Explanation of Solution
Opportunity cost of Federal government is value of other goods and services that the government can buy with that tax revenue.
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
(d)
Relevance of opportunity cost.
(d)
![Check Mark](/static/check-mark.png)
Explanation of Solution
The opportunity cost of foreign government is value of other goods and services that the government can buy with the subsidy amount.
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
(e)
Relevance of opportunity cost.
(e)
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Explanation of Solution
Opportunity cost of upgrading balcony is alternative use of that money.
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
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Chapter 2 Solutions
Principles Of Microeconomics
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
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