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Unformatted text preview: compare college and alternative opp. Cost are tuition and fees truly opp. Cost is food truly an opportunity cost? No true opp. Cost= (room EL- room MC) in important implicit cost : foregone earnings (for some, largest cost) opp. Cost = (earnings after HS-earnings part-time college) ~ $10,000 o opp. Cost of college is large but benefit is large: college earnings >> earnings HS o Kevin Garnett- opp. Cost = tuition + forgone earnings = $20 million/ yr o Graphical Tool: production possibilities of available resources used as well as possible efficient not being wasteful Special case: 2 activities use same resources + technology green Frisbees + white Frisbees made- up to get one additional white, give up one green opp. Cost of one additional W = 1 G opp. Cost of one green = 1W...
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This note was uploaded on 04/19/2011 for the course EC 201 taught by Professor Ballard during the Fall '08 term at University of Michigan.
- Fall '08