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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education