When Costco opened a gas bar just off Highway 401, the neighbourhood was swamped with cars as
Question:
When Costco opened a gas bar just off Highway 401, the neighbourhood was swamped with cars as drivers lined up to get the discount of 10 cents a litre.
a. What is the opportunity cost of a litre of gas? Explain.
b. To control the crowd, Costco hires traffic police. What is the tradeoff that Costco faces?
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a The opportunity cost of a lit re of gas is the amount of money tha...View the full answer
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