Economics 2150A/B Lecture Notes - John Wiley & Sons, Isocost, Sunk Costs

• School: Western University
• Department: Economics
• Course: Economics 2150A/B
• Professor: Prof

Document Summary

Suppose you are a star basketball player at a major university in your sophomore year. You are sought after by several nba teams. Which of the following choices best characterizes your opportunity cost if you choose to drop out of college and enter the. The value of your college scholarship that you have given up. The skills that two more years of playing at your college would have given you along with their additional value over the rest of your life, in addition to the educational value of the college degree. The total of implicit costs that have been incurred in the past. c) d) You have invested about ,000 in a new (hopefully) trendy restaurant in an urban location. These costs have gone to purchase the restaurant, prepay insurance for the following year and purchase supplies for the restaurant. ,000 per year to hire each waiter and waitress. (they earn tips which they get to keep. )