Maria has just paid down on a small apartment for which the mortgage is $2200 per month. Before she moves in, a work colleague offers to rent it for $5000 per month. Since Sharon is longing to move out of her parents house even though she doesn't have to pay rent there, she declines the rental offer and occupies her new apartment. What is the value of the opportunity cost of her choice?

Maria has just paid down on a small apartment for which the mortgage is $2200 per month. Before she moves in, a work colleague offers to rent it for $5000 per month. Since Sharon is longing to move out of her parents house even though she doesn't have to pay rent there, she declines the rental offer and occupies her new apartment. What is the value of the opportunity cost of her choice?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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