LABOR ECONOMICS LOOSELEAF 8/E
LABOR ECONOMICS LOOSELEAF 8/E
8th Edition
ISBN: 9781264010516
Author: BORJAS
Publisher: MCG
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Chapter 8, Problem 4P
To determine

Determine whether the friends are deciding to move or not.

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You are choosing between buying a home or continuing to rent.You value the home at $1,000,000 (one million dollars) over the course of your life.The home will cost $600,000, which includes the $400,000 price tag for the house itself,$100,000 in mortgage interest payments, and $100,000 in repair costs.You value the apartment you'd live in at $800,000 over the course of your life, and it will cost$500,000 in rentWhat is the economic surplus of buying the house? Don't include commas or dollar signs inyour answer.
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