econ 105_tut question_chapter 1_sfu_answer0


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Unformatted text preview: that you work. What is the opportunity cost of going skiing? Do you need any other information before computing the opportunity costs? In general, the opportunity cost for any activity includes three things: the direct cost of the activity, plus whatever you give up in order to do the activity, minus whatever “savings” the activity generates In this case, the direct cost of transportation, lift tickets and accommodation of $300 is definitely included. The income of $120 that you give up also counts. Finally, we must deal with the restaurant meals of $75. so that opportunity costs of skiing would be giving up...
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