Survey Of Economics
Survey Of Economics
10th Edition
ISBN: 9781337111522
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 2, Problem 2SQ
To determine

Opportunity cost of studying.

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Suppose you go to a restaurant and buy an expensive meal.  Halfway through, despite feeling quite full, you decide to clean your plate.  After all, you think, you paid for the meal, so you are going to eat all of it. What’s wrong with this thinking?
You have two choices for how you are going to spend Saturday evening. You can go to the pub with your friends, which will cost you £30 for the evening. The pleasure you anticipate from this experience is worth £50 to you. Or you can go to the theatre The ticket will cost you £50, but you value the experience at £60. Based on this information. a)What is your opportunity cost of going to the pub? b)What is your economic cost of going to the pub? c)What is your economic rent of going to the pub?
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon? Select one: O a. $57 O b. $12 ○ c. $22 ○ d. $8
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