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Chapter 2: Q. 2.20 (page 47)

Suppose that in Figure 2-1, a student currently is allocating her study time in such a way that she is earning a C in mathematics and a C in economics. If the student desires to boost her economics grade to an A, how must she alter the number of hours per week that she studies economics? How must she alter the number of hours per week that she studies mathematics?

Short Answer

Expert verified

Economics- 6

Maths- 0

Step by step solution

01

Step1. Introduction

Opportunity cost is the cost of choosing one alternative over the next best alternative. More of it is like a tradeoff between the option we choose and the next best alternative.

02

Step2. Explanation

The person wants to move from combination of C and C in maths and economics to A in economics, which means F in maths. For a A in economics, 3 more hours are required, i.e. from 3 hours currently to 6 hours. This implies no time left for studying maths.

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