Midterm1ReviewQs

# Midterm1ReviewQs - Review for Midterm 1: Fall 2010 I....

This preview shows pages 1–3. Sign up to view the full content.

Review for Midterm 1: Fall 2010 I. Opportunity Cost: You won a free ticket to see an Eric Clapton concert (which has no resale value). Bob Dylan is performing on the same night and is your next-best alternative activity. Tickets to see Dylan cost \$40. On any given day, you would be willing to pay up to \$50 to see Dylan. Assume there are no other costs of seeing either performer. Based on this information, what is the opportunity cost of seeing Eric Clapton? a. \$0 b. \$10 c. \$40 d. \$50 Adam entered a raffle and won a ticket to a Phillies playoff game. Unfortunately, the game is scheduled for the same evening as Penn Soccer Teams game. Adam can see the Soccer team for free and values it at \$25. The resale value of the Philly ticket is \$25 and he values that game at \$40. What is the opportunity cost of going to the Philly’s game? a. \$90 b. \$65 c. \$50 d. \$25 Consider the daily production table below of yams and sweet potatoes. Suppose that the joint economy of Barry and Gary is producing 10 yams and 10 sweet potatoes. What is the opportunity cost of yams?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## Midterm1ReviewQs - Review for Midterm 1: Fall 2010 I....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online