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lectur8-page33 - of interest that I could have earned had I...

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If we produce corn and decide to store to it for 6 months, What is the opportunity cost ? OR Well, if you stick that corn in a storage bin, it is not earning you any interest. It is just sitting there. If I store the corn for six months, I have lost six months
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Unformatted text preview: of interest that I could have earned had I sold the corn and deposited the proceeds into some sort of financial instrument. The interest forgone, or the opportunity cost, is a true cost of storage that needs to be taken into account....
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