Class_2_worksheet

Class_2_worksheet - Economics 101 P. Conway, Fall 2011...

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Economics 101 P. Conway, Fall 2011 In-class worksheet, Class 2 1. The opportunity cost of an activity is the value of what must be foregone in order to undertake the activity. What’s the opportunity cost of taking Econ 101 at 11 am on Tuesday and Thursday? Lunch plans, taking a different T/Th class What’s the opportunity cost of taking Econ 101 at 8 am on Monday, Wednesday and Friday? Is it higher or lower? SLEEP Higher *how much would you pay (or take) to switch classes? 2. The marginal cost is the increase in total cost that results from carrying out one additional unit of an activity The marginal benefit is the increase in total benefit that results from carrying out one additional unit of an activity . For people without cars, there are two ways to go to New York. If they fly, they pay $400 and spend 2 hours in transit (one hour each way). If they take a bus, they pay $60 and spend 20 hours in transit (10 hours each way). What is the marginal cost of traveling each way?
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Class_2_worksheet - Economics 101 P. Conway, Fall 2011...

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