Suppose Mike has three hours of time to spend and he sets the following activities in order of priority: (1) study Macroeconomics; (2) see a movie; (3) attend a ball game. Assume that each activity takes three hours. What is Mike's opportunity cost of studying Macroeconomics

Question

Social Studies

Carly Black

26 December, 03:04

Suppose Mike has three hours of time to spend and he sets the following activities in order of priority: (1) study Macroeconomics; (2) see a movie; (3) attend a ball game. Assume that each activity takes three hours. What is Mike's opportunity cost of studying Macroeconomics

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Answers (2)

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Elian Trevino · Answer 1

2

Explanation:

See a movie

Mike's opportunity cost of studying macroeconomics is seeing a movie.

Opportunity cost is the value of something when a particular course of action is chosen and also the value of next alternative forgone. Simply put, the opportunity cost is what you must forgo in order to get something.

If Mike gives up studying macroeconomics in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it. The next alternative to studying microeconomics was to go see a movie.

Giovanni Gallagher · Answer 2

(2) see a movie;

Explanation:

Mike's opportunity cost of studying macroeconomics is seeing a movie. Opportunity cost is the value of next alternative forgone. That is, the enjoyment an individual would have derived if he/she had opted in for the next alternative to his/her current choice. The next alternative to studying microeconomics was to go see a movie.