EBK MICROECONOMICS
2nd Edition
ISBN: 9780100254138
Author: BERNHEIM
Publisher: YUZU
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Question
Chapter 3, Problem 3DQ
To determine
Acceptability of the statement.
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You have just woken up and are trying to decide whether to attend an upcoming lecture. The following are the costs and benefits you are considering. Tuition is $7,000 per semester; Books are $500 per semester; Driving to class is $10; Wages earned if you went to work instead are $35; How much you value an extra hour of sleep = $25; The cost of tuition and books ___________ be included in your calculations because they are an example of ________________ costs.
Group of answer choices
A)should not; sunk
B)should; sunK
C)should; marginal
D)should not; marginal
E)should; opportunity
In economics, what is the term for the highest-valued alternative that must be sacrificed when making a decision? A. Marginal cost B. Opportunity cost C. Sunk cost D. Average cost
It takes 1 hour to travel from New York to Washington D.C. by air and 8 hours by bus. The airfare is $200 and the busfare is $55. If a traveler wishes to minimize the total cost of making this trip, which mode of transportation should be selected if the traveler’s opportunity cost of time spent in transit is $10 per hour? Justify your answer.
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