You have driven 800 miles on a vacation and then you notice that you are only 15 miles from an attraction you hadn't known about, but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit, you should include
a. both the cost of driving the first 800 miles and the next 15 miles.
b. the cost of driving the first 800 miles, but not the cost of driving the next 15 miles.
c. the cost of driving the next 15 miles, but not the cost of driving the first 800 miles.
d. neither the cost of driving the first 800 miles nor the cost of driving the next 15 miles.
c
You might also like to view...
Economists refer to externalities as an example of market failure when:
a. markets do not consider social costs as part of overall costs. b. additional external costs are so high that the firm must shut down. c. private costs are the same as costs to society as a whole. d. citizens bring lawsuits to stop production that pollutes.
What are three potential causes of market shifts in a given economy?
What will be an ideal response?
Bank accounts and bonds are examples of money-fixed assets.
Answer the following statement true (T) or false (F)
Economists attempt to discover explanations for events that are observed.
a. true b. false