micro p16 45 090704

micro p16 45 090704 - immediately as disposable income. 5....

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Adam Petrone 9/8/04 Professor Sattinger Eco 110M Page 16, Problems and Applications #4, 5 4. The opportunity cost of spending the $100 won in the basketball pool is $5, the money you would earn in interest if you put the money in the bank. The opportunity cost is the best alternative that is forgone because a particular course of action is pursued. This $5 was given up in order to have the $100 available
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Unformatted text preview: immediately as disposable income. 5. It would be recommended to complete the project. By completing the project, the companys loss stands at $3 million as opposed to losing the entire $5 million that has already been invested. The most that you should pay in order to complete the development is $1 million. Investing more money would be without benefit and thus impractical....
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This note was uploaded on 04/28/2008 for the course ECO 110 taught by Professor Liugang during the Fall '08 term at SUNY Albany.

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