QUESTION THREEA UPSA student decides to spend his income on any of these four items - pay tuitionfees, pay hostel fees, buy foodstuffs, buy a laptop, and buy a gift for a friend. Themarket price and the student's expected monetary values or benefits placed on theitems are, respectively, presented in the table below.BenefitGH¢1,4101,3801,4801,5101,450ItemDirect costGH¢TuitionHostel950950Food950LaptopGift950950A. Suppose the student has GH¢ 950.00 to spend on one of the five items. Fromyour results in (A),i. Find the opportunity cost of each item.ii. Compute the net benefit of each item using the respective direct cost.iii. . Compute the net benefit of each item using the respective opportunity cost.iv. iv. From your results in (ii), which item should the student pay for? Explainyour answer.

Opportunity cost is the cost of all the things we sacrifice when we choose one option over the…

QUESTION THREE A UPSA student decides to spend his income on any of these four items - pay tuition fees, pay hostel fees, buy foodstuffs, buy a laptop, and buy a gift for a friend. The market price and the student's expected monetary values or benefits placed on the items are, respectively, presented in the table below. Direct cost GH¢ 950 950 Benefit GH¢ 1,410 1,380 1,480 1,510 Item Tuition Hostel Food Laptop Gift 950 950 950 1,450 A. Suppose the student has GH¢ 950.00 to spend on one of the five items. From your results in (A), i. Find the opportunity cost of each item. il. Compute the net benefit of each item using the respective direct cost. ii. . Compute the net benefit of each item using the respective opportunity cost. iv. iv. From your results in (ii), which item should the student pay for? Explain your answer.

QUESTION THREE A UPSA student decides to spend his income on any of these four items - pay tuition fees, pay hostel fees, buy foodstuffs, buy a laptop, and buy a gift for a friend. The market price and the student's expected monetary values or benefits placed on the items are, respectively, presented in the table below. Direct cost GH¢ 950 950 Benefit GH¢ 1,410 1,380 1,480 1,510 Item Tuition Hostel Food Laptop Gift 950 950 950 1,450 A. Suppose the student has GH¢ 950.00 to spend on one of the five items. From your results in (A), i. Find the opportunity cost of each item. il. Compute the net benefit of each item using the respective direct cost. ii. . Compute the net benefit of each item using the respective opportunity cost. iv. iv. From your results in (ii), which item should the student pay for? Explain your answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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