Explain the trade-offs of taking care of a love one and attending college. List the alternatives...

Explain the trade-offs of taking care of a love one and attending college. List the alternatives you had, identify the highest valued alternative and explain your final decision?

Solutions

Expert Solution

Alternatives:

No1) if the college is attended, few alternatives are gone – (a) watching movie, (b) playing basketball, and (c) taking sleep.

No.2) if there is watching movie, few alternatives are gone – (a) attending college, (b) playing basketball, and (c) taking sleep.

Highest value:

Suppose the following highest values are assigned to each alternative.

Watching movie = $5

Playing basketball = $3

Taking sleep = $2

Attending college = $7

Decision:

The college must be attended, since it has the highest value ($7) out of all alternatives. The next best alternative is watching movie ($5) – this is the opportunity cost of attending college.

Opportunity cost (OC) should be calculated as below:

	Opportunity cost
Attending college	5/7 = 0.71 (lower)
Watching movie	7/5 = 1.4

The lower opportunity cost establishes comparative advantage; in this case attending college. The act should be done which has comparative advantage, as attending college.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Explain why scarcity leads to trade-offs.

1) Every society faces trade-offs. Explain the concept of trade-offs. Give an example. 2) Outline the...

1) Every society faces trade-offs. Explain the concept of trade-offs. Give an example. 2) Outline the various actions the government sector could take to promote growth.

What are the economic costs of attending college? List the relevant factors and defend your answer....

What are the economic costs of attending college? List the relevant factors and defend your answer. “The elasticity of demand for Coca Cola is smaller than for soda in general.” Is this sentence true or false? Defend your answer. Over time, the contributions of computing and computer power to economic output have grown. How do you expect this will affect the market for college degrees in computer science? Defend your answer. A graph is required for full credit. Suppose there...

Accounting involves a lot of trade-offs. List the two main options under the measurement principle and...

Accounting involves a lot of trade-offs. List the two main options under the measurement principle and briefly discuss the trade-offs between the two options. ( i.e, historical cost and fair value)

Explain business-level strategies? What is your understanding of Strategic Trade-offs?

Explain business-level strategies? What is your understanding of Strategic Trade-offs? Explain how the economics of scale and learning-curve effects helps to keep the cost low.

Explain how a current event in national politics or economics reflects the concepts of trade-offs and...

Explain how a current event in national politics or economics reflects the concepts of trade-offs and opportunity costs. Do you agree with the choice that was made?

Explain why the scarcity of resources causes people and nations to consider opportunity costs and trade-offs...

Explain why the scarcity of resources causes people and nations to consider opportunity costs and trade-offs among choices.

In each of the following decision situations, explain the trade-offs involved. a. You need to decide whether...

In each of the following decision situations, explain the trade-offs involved. a. You need to decide whether to buy a used or a new car. b. You are thinking about opening a computer-services business in your basement. c. You are a consultant for the City of Toronto. The city council asks you to analyze the implications of a new high-rise office building downtown.

Explain the trade-offs, particularly for throughput (performance), involved in preparing an image, video, or 3D image...

Explain the trade-offs, particularly for throughput (performance), involved in preparing an image, video, or 3D image processing task for parallel processing ?

People Face Trade-offs You have one semester left to graduate and you have the finances to...

People Face Trade-offs You have one semester left to graduate and you have the finances to do a maximum of four courses. Three of the courses are required courses. The last course slot belongs to an elective. You have narrowed down your choices to three electives, all of which are very popular and very useful courses that you are very interested in. Decide on the course you want to take. Then using at least two economic decision-making principles, explain why...

Subjects