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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Explain what is meant by opportunity cost of choice
a. Would the study of economics be necessary if resources were unlimited? b. "Wants are not limitless. This can be proven. I get all the breakfast I want every morning." Explain. c. You are invited to go to the movies this weekend as a gift for your birthday. Explain whether or not this gift is free. d. List two opportunity costs a law student may incur in order attend law school. Do you think two different students will incur the same opportunity costs? Explain.
Chapter 1 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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- 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 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_forwardWhat are Opportunity Costs? How is it different from Cost Benefits? (2 PAGES)arrow_forward
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