EconEssay1a - Joaquin Effertz ECON 106 Opportunity Cost and...

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Joaquin Effertz 10/5/07 ECON 106 Opportunity Cost and Comparative Advantage as Applied to Waiting in Line In the lower level of the Student Union Building (SUB) at the University of New Mexico, there is located a store that sells many different types of food and other products. This store is frequented by many students at the University of New Mexico. I frequently pass this store on my way to classes, and I have observed that approximately between the hours of 11 A.M. and 1 P.M., an extremely long line forms within the store, sometimes spanning a length greater than that of the store itself. Every day, during these hours, many students in need or want of the products offered at the store will wander into the store and see the long line. Some of these students, particularly in groups, will find their desired food product and choose to wait in this line. Other students will see the line and leave the store, deciding that waiting in the line, for whatever reason, is not worth the purchase of their desired product. This behavior is an illustration of the economic principles of opportunity cost, marginal utility and comparative advantage. The opportunity cost of doing something can be stated as the value of the next best thing that could be done. Economically, if the opportunity cost of something is relatively high, it will generally be avoided. The opportunity cost of buying something at the store in the SUB during lunch hours is greater for some students than others. Some students are more bored by waiting in a long line than others. Students in groups may find each other’s company to make waiting in the line more bearable. Students who do not have an impending class have a lower opportunity
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cost because they do not have to potentially give up time in class when they stand in the line. Some students may not need their product as much as others, and some students may have
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EconEssay1a - Joaquin Effertz ECON 106 Opportunity Cost and...

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