You have driven 800 miles on a vacation and then you notice that you are only 15 miles from an attraction you hadn't known about, but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit, you should include
a. both the cost of driving the first 800 miles and the next 15 miles.
b. the cost of driving the first 800 miles, but not the cost of driving the next 15 miles.
c. the cost of driving the next 15 miles, but not the cost of driving the first 800 miles.
d. neither the cost of driving the first 800 miles nor the cost of driving the next 15 miles.
c
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If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals
A) 225. B) 250. C) 300. D) 450.
Profit maximization requires that
A) the marginal factor cost of every input equals that input's marginal physical product. B) the marginal factor cost of every input equals that input's marginal revenue product. C) the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input. D) equal amounts of each input are employed.