Melissa is a self-employed lawyer who chooses a higher-priced restaurant that is 2 miles away from her home over a cheaper restaurant that is 15 miles away from her home. Which of the following is the most likely explanation for her behavior?
A) The opportunity cost of her time is very low.
B) She does not take the time taken to travel to the restaurants into consideration.
C) She does not like to cook.
D) The prices at the more expensive restaurant understate the opportunity cost of eating there.
E) The higher cost of the more expensive restaurant is offset by the higher opportunity cost of the cheaper restaurant.
Correct Answer:
Verified
Q12: Table 2.1 Q13: What is the term for giving up Q14: The opportunity cost of choosing a particular Q15: The opportunity cost of an activity is Q16: What is the total cost of attending Q18: Table 2.1 Q19: Table 2.1 Q20: The term opportunity cost suggests that _ Q21: Table 2.1 Q22: Table 2.2 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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