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10) A punk duo has 4 options on things in can do next month: sell designer hair gel and earn $4,500; tour and earn $4,000; it can work on a new album which will cost $2,500; or hike around Europe and break even. If it can do one and only one of these activities, what is the opportunity cost this year of working on a new album? (Note

10) A punk duo has 4 options on things in can do next month: sell designer hair gel and earn $4,500; tour and earn $4,000; it can work on a new album which will cost $2,500; or hike around Europe and break even. If it can do one and only one of these activities, what is the opportunity cost this year of working on a new album? (Note

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section: Chapter Questions
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10) A punk duo has 4 options on things in can do next month: sell designer hair gel and earn $4,500; tour and earn $4,000; it can work on a new album which will cost $2,500; or hike around Europe and break even. If it can do one and only one of these activities, what is the opportunity cost this year of working on a new album? (Note that they are likely to earn money in the future by selling this album, but the fact that they will earn money later from this endeavor does not change the question.) a) $2,000 b) $2,500 c) $7,000 d) $13,000
Transcribed Image Text:10) A punk duo has 4 options on things in can do next month: sell designer hair gel and earn $4,500; tour and earn $4,000; it can work on a new album which will cost $2,500; or hike around Europe and break even. If it can do one and only one of these activities, what is the opportunity cost this year of working on a new album? (Note that they are likely to earn money in the future by selling this album, but the fact that they will earn money later from this endeavor does not change the question.) a) $2,000 b) $2,500 c) $7,000 d) $13,000
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