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When costco opened a gas bar just off highway 401 the

Question: When Costco opened a gas bar just off Highway 401, the neighbourhood was swamped with cars as drivers lined up to get the discount of 10 cents a litre.

a. What is the opportunity cost of a litre of gas? Explain.

b. To control the crowd, Costco hires traffic police. What is the tradeoff that Costco faces?

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Microeconomics: When costco opened a gas bar just off highway 401 the

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Microeconomics: When costco opened a gas bar just off highway 401 the

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