For spring break, Melanie will either stay home or go to Daytona Beach. At home, Melanie pays $10 per day for food and earns $90 a day at her job. At Daytona Beach, Melanie will stay with friends and so has no lodging cost
She will pay $20 per day for food. In terms of dollars, Melanie's opportunity cost per day of going to Daytona Beach is how much?
Melanie's opportunity cost of going to Daytona Beach is $100 per day. If she goes, she spends $10 extra for food and loses $90 income from her job, for a total opportunity cost of $100.
You might also like to view...
Explain the concept of moral hazard. Give an example
What will be an ideal response?
If the government's expenditures exceeded its receipts, it would likely
a. lend money to a bank or other financial intermediary. b. borrow money from a bank or other financial intermediary. c. buy bonds directly from the public. d. sell bonds directly to the public.
According to the rule of 70, if the interest rate is 5 percent, how long will it take for the value of a savings account to double?
a. about 3.5 years b. about 6.3 years c. about 12 years d. about 14 years
According to the Coase theorem, under which conditions can private parties solve the problem of externalities?
a) if the cost of bargaining is small b) if the initial distribution of rights favours the person being adversely affected by the externality c) if the number of parties involved is sufficiently large d) if the number of parties involved is sufficiently small