Opportunity cost of going to florida

Assignment Help Microeconomics
Reference no: EM132051446

In some cases, realizing the opportunity cost can alter behavior. Imagine, for example, that you spend $8 on lunch every day at work. You may know perfectly well that bringing a lunch from home would cost only $3 a day, so the opportunity cost of buying lunch at the restaurant is $5 each day (that is, the $8 buying lunch costs minus the $3 your lunch from home would cost). $5 each day does not seem to be that much. However, if you project what that adds up to in a year-250 days a year × $5 per day equals $1,250, the cost, perhaps, of a decent vacation. If the opportunity cost is described as "a nice vacation" instead of "$5 a day," you might make different choices.

(Opportunity Cost) You can either spend spring break working at home for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What's your opportunity cost of going to Florida?

Reference no: EM132051446

Questions Cloud

Experiencing population growth : Suppose there are two very similar countries. Both countries have the same population and neither is experiencing population growth
Experiencing population growth : Suppose there are two very similar countries Both countries have the same population and neither is experiencing population growth
Briefly describe the radical and sceptical views on globaliz : What does the existing literature shows about relations between Fdi inflows &income, between FDI inflows and corruption and between Fdi inflows and pollution?
Steady-state level of capital : A small country's aggregate production function is given by Y = K1/2. Its depreciation rate is 5% and its investment rate is 25%.
Opportunity cost of going to florida : If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What's your opportunity cost of going to Florida?
Estimate for the population mean to be from : This information is used to calculate an interval estimate for the population mean to be from 40 to 56 rooms.
Understand the marginal revenue function : The demand equation for a manufacturer's product is p = 400 - q2, where p is the price per unit for q units. Help me understand the marginal revenue function.
Calculate the equilibrium level of income : Calculate the equilibrium level of income. Calculate the level of Savings at the equilibrium level of Income.
What is the impact on output supply : Given this information, using the intertertemporal model, what is the impact on output supply?

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the arguments for using real per capita gni

Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..

  Average total cost curve

Analysis is based on a scenario in which the firm is operating on the declining portion of its average total cost (ATC) curve. What would happen to profits if ATC was constant or increasing when demand increases?

  Is the demand for these puzzles elastic or inelastic

In the 2010 holiday season, Steve Richardson decided to cut the prices of his handcrafted wooden puzzles to increase sales. According to a newspaper account, "the number of orders at Stave Puzzles Inc., his Norwich, Vermont, business, hasn't been ..

  A pharmaceutical company has a patent on a lung cancer

a pharmaceutical company has a patent on a lung cancer treatment drug that gives them a monopoly over thenbsp

  Management deals with these two sometimes competing goals

The Theory of the Firm document, the Friedman article, and the information in chapter 4 argue that the main goal of a firm in a market economy is to maximize profit (shareholder wealth) over the long term. However, SEC regulations require U.S. corpor..

  Determine the profit if 500 specialty pizzas are sold

Determine the profit if 500 specialty pizzas are sold. Interpret your result and how many specialty pizzas would need to be sold to make a profit of $1,100? Interpret your result.

  Calculate the present value of the machine

A company puts $25,000 down and will pay $5000 every year for the life of a machine (10 years). If the salvage value is $0 and the interest rate is 10%.

  Do you expect icahn to go through with his challenge

Losing AOL as a partner would also undermine Google's competitive position - meaning a reduction in its overall profit of $50 million (on top of the foregone $70 million alliance profit). In an efficient negotiated agreement, should AOL partner wit..

  Show that for a salient-pole synchronous generator

Show that for a salient-pole synchronous generator, the per phase reactive power in terms of power angle d and for a lagging power factor, is given by Also determine the maximum reactive power Q, the generator can deliver with fixed excitation. Negle..

  How do jerry consumption possibilities change

Jerry has $12 a week to spend on yogurt and berries. The price of yogurt is $2, and berries are $4 a box. How do Jerry's consumption possibilities change.

  Intellectual standards and describe for each scenario

You are deployed in a country. A raid went wrong, and your squad opened fire on several innocent people. Your commander asks you and the rest of the squad to make it look like they opened fire up on you first. How would you respond?

  Question 1 what do you mean by a social welfare function if

question 1 what do you mean by a social welfare function? if you suppose that such a function exists what properties of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd