Explanation (a) Opportunity cost of buying textbook online instead from bookstore. In the given case, Ms. L can buy textbook from college by paying few dollars extra, this can make her to own the book at that particular moment which can make her to understand better in class by following the book. Whereas, on the other hand Ms. L can order the same book online by paying a lesser amount, but have to wait for a few days. Therefore, the opportunity cost of buying textbook online instead from bookstore is the opportunity to understand the subject in the class. (b) Relevant choice for the student. If Ms. L buys book from college bookstore: If Ms. L buy book from college bookstore then she will pay $65. If Ms. L buys book from first online site: Shipping method Delivery time(days) Cost of book($) Delivery charge($) Total cost of book($) Standard shipping 3-7 55 3.99 58.99 Second-day air 2 business days 55 8.98 63.98 Next-day air 1 business day 55 13...

4th Edition

ISBN: 9781464110375

Author: Paul Krugman, Robin Wells

Publisher: Worth Publishers

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Question

Chapter 1, Problem 3P

To determine

The opportunity cost of each choice

Concept Introduction:

Opportunity Cost: If one alternative is chosen over another alternative then there is a cost for choosing an alternative or the cost of forgone alternative. This forgone cost is said as the opportunity cost.

Expert Solution & Answer

Chapter 1 Solutions

Macroeconomics

Ch. 1 - Prob. 1QFT Ch. 1 - Prob. 1P Ch. 1 - Prob. 2P Ch. 1 - Prob. 3P Ch. 1 - Prob. 4P Ch. 1 - Prob. 5P Ch. 1 - Prob. 6P Ch. 1 - Prob. 7P Ch. 1 - Prob. 8P Ch. 1 - Prob. 9P

Ch. 1 - Prob. 10P Ch. 1 - Prob. 11P Ch. 1 - Prob. 12P Ch. 1 - Prob. 13P Ch. 1 - Prob. 14P Ch. 1 - Prob. 15P Ch. 1 - Prob. 16P

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