Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 2, Problem 12E
To determine
The option with regards to
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Dave's opportunity cost of producing 1 pound of green beans is ______ pound(s) of corn.
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Q6
Homework Answered Due Sep 7th, 11:59 PM
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After much consideration, you have chosen Ireland over Spain for your Study Abroad program next year. However, the deadline for
your final decision is still months away and you may reverse this decision. Which of the following events could prompt you to
reverse this decision?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
The marginal benefit of going to Spain increases.
b The marginal cost of going to Spain increases.
The marginal benefit of going to Ireland increases.
The marginal cost of going to Ireland decreases.
X
Your answer
After graduating college Allen wants to start a business selling hats. He has saved
$10,000 which will be enough for the startup costs for his online store. His dad thinks
that he should instead invest in a mutual fund that pays 3% per year. If Allen will have
materials and labor costs of $4,000 per year and expects a total revenue of $5,500 per
year, what is his opportunity cost of starting this business?
d. Opportunity costs is not measured in dollars, but only the time he will spend on his business.
c. The opportunity cost is $10,000 because he will have to spend that to start the company.
a. There is no opportunity cost because he is making a profit.
O b. His opportunity cost is the $300 he would have earned from the mutual fund.
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