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Managerial Economics 2nd Edition by William Boyes
Edition 2ISBN: 978-0618988624Managerial Economics 2nd Edition by William Boyes
Edition 2ISBN: 978-0618988624 Exercise 15
It has been said that the concept of opportunity cost is central to economics and economic thinking. Understanding opportunity cost will help an entrepreneur determine the true value of decisions. What does mean? What is the opportunity cost of going to play A in the following problem?
You won a free ticket to see play A. Play B is performing at the same time and is your next-best alternative. Tickets to see play B cost $40 but on any given day you are willing to pay up to $50 to see play B. $0
• $10
• $40
• $50
You won a free ticket to see play A. Play B is performing at the same time and is your next-best alternative. Tickets to see play B cost $40 but on any given day you are willing to pay up to $50 to see play B. $0
• $10
• $40
• $50
Explanation
Verified
Verified
Opportunity cost:
Opportunity cost refe...
Managerial Economics 2nd Edition by William Boyes
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