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Suppose you purchased steel for $1M in the past. Since the date of purchase, the price has gone up so that it is worth $1.2M.

Suppose you purchased steel for $1M in the past. Since the date of purchase, the price has gone up so that it is worth $1.2M. You have two alternatives to make use of the steel:

  1. manufacture 2,000 automobiles
  2. resell the steel.

What is the opportunity cost of manufacturing the cars? $____M (Enter only one decimal place)

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