Question
Two economists are attending a conference in an unfamiliar city. At the end of the day, Economist A states she is in the mood for
Two economists are attending a conference in an unfamiliar city. At the end of the day, Economist A states she is "in the mood for a high-quality dinner" and wanders through the center of the city looking for a restaurant. After narrowing her search to two fine-dining establishments located on the same block, she ultimately selects the restaurant with the higher prices (assuming cost is not an issue for either economist). Economist B chooses to go to a one-price all-you-can-eat buffet.
based on the information you were presented only, what is your mom's opportunity cost of doing the arts and craft business in terms of dollar value? Now, suppose at the store she had to pay an extra $25,000 per year for health insurance from her pocket, how does this change her opportunity cost?
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