1. Fred buys only two goods, milkshakes and French fries. The price of an order of fries is $2and the price of a milkshake is $6. Fred's budget is $50.For each question, explain/show clearly how you find the numerical answer and explain inwords what it means.a) What is the marginal opportunity cost to Fred of buying one milkshake?b) If Fred buys six milkshakes, how many orders of fries can he buy?c) What is the total opportunity cost to Fred of buying six milkshakes? Explain.

Opportunity cost is the cost of next best alternative use. It is the cost which a person occur, when…

What is the marginal opportunity cost to Fred of buying one milkshake? If Fred buys six milkshakes, how many orders of fries can he buy? What is the total opportunity cost to Fred of buying six milkshakes? Explain.

What is the marginal opportunity cost to Fred of buying one milkshake? If Fred buys six milkshakes, how many orders of fries can he buy? What is the total opportunity cost to Fred of buying six milkshakes? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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