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In: Economics

Suppose there are two identical Diamonds that you own. The only difference between them is how...

Suppose there are two identical Diamonds that you own. The only difference between them is how you acquired them. One diamond was won as a prize, the other you purchased.

a. What is the difference in the cost of retaining ownership in the two diamonds? Explain. (hint: recall the distinction between accounting and opportunity costs).

b. Will there be any predicted difference in the use of the diamonds? Explain.

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Expert Solution

Rahul Sunny answered 1 year ago
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