Zoe's grandparents are excited about finally paying off their mortgage because,as they say,"Our cost of housing is now zero." Zoe should explain to them the economic concept of:
A) marginal analysis: if the additional cost of housing is zero,then their additional benefit is also zero.
B) opportunity cost: by living in the house,they are giving up the opportunity to sell the house,buy a smaller one,and pocket the difference.
C) efficiency: If their cost of housing is now zero,they should let Zoe move in without charging her any rent.Zoe is better off,and her grandparents aren't hurt.
D) equity: it is unfair that some people are still paying off their mortgage.
Correct Answer:
Verified
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