ECON 2106 Final Review
Every Friday night, Gustavo pays $39.99 to eat nothing but crab legs at the all-you-can-eat seafood buffet at the M Resort in Las Vegas. On average, he consumes 30 crab legs each Friday.
1.33, 0
Monique quits her $40,000 per-year job as an accountant to become a full-time volunteer at a women's shelter.
A. The opportunity cost of Monique's decision is the value of the next-best alternative not chosen. B. The opportunity cost of volunteering at the shelter is the wages she gave up. C. The opportunity cost of Monique's decision is the time she can spend on other activities. D. None of the above. E. ** All of the above.
One of the scarce resources that constrain our behavior is time. Each of us has only 24 hours in a day, and we must allocate our time in a given day among competing alternatives. How do you go about allocating your time in a given day among competing alternatives? How do you go about weighing the alternatives? Once you choose a most important use of time, why do you not spend all your time on that activity?
A. As more and more time is spent on one activity, the opportunity cost of that activity in terms of other activities rises.
The Agrizone Corporation invests $20 million in a new inventory tracking system.
The opportunity cost of investing in a new inventory tracking system is any other projects Agrizone could have invested in.
