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Issues in Economics Today 7th Edition by Robert Guell
Edition 7ISBN: 978-0078021817Issues in Economics Today 7th Edition by Robert Guell
Edition 7ISBN: 978-0078021817 Exercise 1
Suppose you decided to study all last week for this exam instead of doing anything fun. What was the opportunity cost of doing so? Why might the opportunity cost (defined in terms of fun lost) be expected to increase?
Explanation
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Opportunity cost of studying all last week for the exam and instead of doing anything fun is terms of fun lost while studying. As the time is limited so a person needs to decide what his first best choice during that particular period of time. As a person is having exam therefore his best choice should be studying only. Lost fun matters least to him during his exam period.
According to question the condition in which opportunity cost expected to increase is when person unable to clear the exam then he might think that the fun foregone due to study for this exam is very large. Instead he should have fun atleast.
According to question the condition in which opportunity cost expected to increase is when person unable to clear the exam then he might think that the fun foregone due to study for this exam is very large. Instead he should have fun atleast.
Issues in Economics Today 7th Edition by Robert Guell
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