Principles of Macroeconomics Plus MyLab Economics with Pearson eText (1-semester access) -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134424026
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 2, Problem 1.10P
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Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume efficient production. Each has 10 hours in a day to allocate between conducting interviews and completing paperwork.
In two hours Alec can produce 5 interviews or 19 files of paperwork.
In two hours, Ellie can produce 13 interviews or 22 files of paperwork.
What is Ellie's Opportunity Cost of an interview in terms of files of paperwork? Enter a number only.
Note: The question here is asking you for the opp. cost in terms of files so you can just enter a number. On the assessments if the question is phrased as "what is the opportunity cost?", you will have to enter the units as well, without which you will not get full credit.
Discuss one or more examples of an opportunity cost an accountant might not count as a cost. As part of your reply, state why the accountant might ignore this cost.
Your Econ. Professor bought airline tickets to leave a conference early on Saturday morning. He later found out that he needed to present a paper later that Saturday, so he changed his tickets at a cost of $200. When he got to the conference, he discovered that he was scheduled twice: on Friday and on Saturday. He was given his choice of when to give the presentation. He said he would present on Saturday, because he paid an extra $200 in order to stay. Explain why you agree or disagree with his logic.
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Principles of Macroeconomics Plus MyLab Economics with Pearson eText (1-semester access) -- Access Card Package (12th Edition)
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