The confab company spends 1 million to build a new branch


For each of the following situations, identify the full cost (opportunity cost) involved:

a. A worker earning an hourly wage of $8.50 decides to cut back to part-time to attend Houston Community College.

b. Sue decides to drive to Los Angeles from San Francisco to visit her son, who attends UCLA.

c. Tom decides to go to a wild fraternity party and stays out all night before his physics exam.

d. Annie spends $200 on a new dress.

e. The Confab Company spends $1 million to build a new branch plant that will probably be in operation for at least 10 years.

f. Alex’s father owns a small grocery store in town. Alex works 40 hours a week in the store but receives no compensation.

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Microeconomics: The confab company spends 1 million to build a new branch
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