Question: Ch. 1 Help Save & Kamryn is deciding between th ) Staying at home and watching her favorite telev…

02 May Question: Ch. 1 Help Save & Kamryn is deciding between th ) Staying at home and watching her favorite telev…

Posted at 09:10h in 2Past Paper by Exams

Ch. 1 Help Save & Kamryn is deciding between th ) Staying at home and watching her favorite television show, an activity that she values at $18 and that entalls no out-of-pocket costs 2) Going to the movies with her sister to see the latest blockbuster action film, an activity she values at $30 and that entails $15 in out of-pocket costs 3) Going out to dinner with her best friend, an activity she values at $40 and that entails $23 in out-of-pocket costs. a) Which activity should Kamryn choose? O Going to the movies with her sister e Staying at home and watching her favorite show O Going out to dinner with her best friend b) What is Kamryn’s opportunity cost of going to the movies? Instructions: If you are entering a negative number, be sure to include a negative sign () c) Relative to her next best alternative, what is Kamryn’s economic surplus from going to the movies? Instructions: If you are entering a negative number, be sure to include a negative sign ()

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