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Chapter 2: Q.27 (page 44)

What is Marie’s opportunity cost of purchasing a

pie?

Short Answer

Expert verified

Marie’s opportunity cost of purchasing a pie is 3

Step by step solution

01

Step 1. opportunity cost

Opportunity cost which is also called Alternative cost refers as the next best alternative that is forgone.

02

Step 2.Concept

the opportunity cost of pie is the number of magazines she can give up upon for one more pie

so Marie’s opportunity cost of purchasing a pie is three.

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Most popular questions from this chapter

Suppose Alphonso’s town raises the price of bus

tickets from \(0.50 to \)1 and the price of burgers rises from \(2 to \)4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso’s weekly spending money increases from \(10 to \)20. How is his budget constraint affected from all three changes? Explain.

Is the economic model of decision-making

intended as a literal description of how individuals,

firms and the governments actually make decisions?

During the Second World War, Germany’s

factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany’s production possibilities curve?

What are diminishing marginal returns?

What is productive efficiency? Allocative efficiency?
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