yoyoma - Inclassexercise#1 KafuWong 1 TheQuestion...

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1 Ka-fu Wong University of Hong Kong In-class exercise #1
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2 The Question You won a free ticket to see a concert by Eason Chan, a local pop  singer.  You cannot resell it (say, your photo ID will be checked at  entrance). Yo-Yo Ma, the world’s finest cellist, is performing on the  same night and is your next-best alternative activity. Tickets to see  Yo-Yo Ma cost $800. On any given day, you would be willing to  pay up to $1000 to see Yo-Yo Ma. Assume there are no other  costs of seeing either performer. Based on this information, what is  the opportunity cost of seeing Eason Chan?  (A) $0. (B) $200.  (C) $800.  (D) $1000. When we do not know how to solve a difficult problem,  Try to modify/simplify the setup so that the answer will  become obvious.  Have a good understanding of it. Then gradually change it back to the original problem and  see how we can solve the original problem. 
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This note was uploaded on 09/06/2010 for the course FBE ECON1001 taught by Professor Dr.demurger during the Fall '08 term at HKU.

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yoyoma - Inclassexercise#1 KafuWong 1 TheQuestion...

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