ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Bartleby Related Questions Icon

Related questions

Question
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.
Benefit
GH¢
1,410
1,380
1,480
1,510
1,450
Item
Direct cost
GH¢
Tuition
Hostel
950
950
Food
950
Laptop
Gift
950
950
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.
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? Explain
your answer.
expand button
Transcribed Image Text: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. Benefit GH¢ 1,410 1,380 1,480 1,510 1,450 Item Direct cost GH¢ Tuition Hostel 950 950 Food 950 Laptop Gift 950 950 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. 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? Explain your answer.
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education