lectur5-page4 - Depending on the value that you place on...

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4 4 The monetary price of a commodity may not be the true or total cost of obtaining the economic good or service u Bag Lunch vs. Buying Lunch u Living on Campus vs. Commuting u Eating Out vs. Eating at Home The monetary price of a commodity may not be the full cost of obtaining the commodity. Let’s take a look at a few examples. Is bringing a bag lunch to school really cheaper than buying your lunch at school? On the surface, it may appear that a bag lunch would be cheaper, but upon closer examination, it might not be. You have to prepare your bag lunch which requires time either in the morning or the evening before you go to bed. You had to go to the store and purchase the components for your bag lunch. You may need a refrigerator to store some of those lunch components in. And, you will probably have to wash a utensil or two after preparing your bag lunch. All of these steps or processes requires your time. Now, you lug that bag lunch all over campus in the morning and have to remember not to leave it under your seat after class.
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Unformatted text preview: Depending on the value that you place on your time, and the hassle of preparing and keeping up with your lunch, you may decide that buying your lunch at school is actually cheaper. Living on campus versus commuting from off-campus, which is cheaper. If you live on campus, the need for a motor vehicle is practically non-existent. Your room rent on campus includes your utilities with the exception of your phone and perhaps cable TV. Choosing the meal plan means you don’t have to go to the grocery store, cook, or wash any dishes. If your roommate flunks out or quits school, your share of the rent remains the same when you live on campus. As a matter of fact, more students wanted to live on campus this year than in recent years past which caused quite a problem for many first year, Ag. Institute students this fall. Could lower cost be the reason?...
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