Mark and Charles are roommates at college.Each has written a 25-page term paper for the same English class.They are equally poor typists.Charles types his own paper and gets paid by Mark to type his, too.Which statement best describes Mark and Charles's behaviours from an economic perspective?

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that must be forgone in order to undertake a certain activity. In this case, Mark is paying Charles to type his paper, indicating that his opportunity cost of typing is higher than Charles's. This means that Mark values his time more highly than Charles does, and is willing to pay for someone else's time in order to free up his own.

Mark and Charles Are Roommates at College