Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 3, Problem 3.1IP
To determine
The
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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?
Give typing answer with explanation and conclusion
You already have a ticket to a club tomorrow, which costs you $30 and give you the enjoyment of $35. A friend invites you to go kayaking. Rental kayak fees would cost you $25, and you think you’d get $25 worth of enjoyment. Your club ticket is nonrefundable. What is your opportunity cost (in dollars) of kayaking?
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Managerial Economics: A Problem Solving Approach
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