Consider the outdoor activity of horseback riding. Assume that the rental cost o

Question

Consider the outdoor activity of horseback riding.

Assume that the rental cost of riding equipment is $50 and horse rental costs $95. If you go horseback riding, you would also wear the riding boots you purchased last year for $150. If you do not go horseback riding, you could either work at your part-time job, which would earn you $100, or study at the library, which you value at $40.

Suppose that you were planning to spend Saturday studying at the library, but a friend asks you to go horseback riding.

1. The opportunity cost of going horseback riding is ___________

2. Now suppose you had been planning to spend the day working at your part-time job.

hat is included in the opportunity cost of going horseback riding in this case? Check all that apply.

a.The wages you forgo by going horseback riding

b.The cost of the riding boots you purchased last year

c.The value of your time spent studying

d.The cost of horse rental

e.The rental of any riding equipment you need

Ten Principles of Economics : Algorithmic End of Chapter Groded Aczignment Rcad Chapter 1 |Back to Assignment Duc Monday 01.15.18 st 11-do rM Attempts Average: 3. Prohlems and Applications 03 Corsider the outdcor activity o huebak riing Assume that the rental cost of riding equipment i: $20 and horse rental cost?$95. If You go horseb ex riding, you woud loo wear the riding boot you purchased last year for 5150. If you do not go horseback riding. You could either workat your part-umejot, which would earn you 100, or study at the lib'+' y, nhich you value ? 340. Suppooe that you were plarring to spnd Saturday tu dyingthe ibrary, but a fiend atks ycu to go hcrecback riding. but a fiend atks ycu o ge The opporunity cast af gsing horseback riding s $285 NoN suppoae you had been plairg to spind the day working at your par tm job. wh at is induded in the up ortunity cost of geing orsebatk ridng in this case? Check an thet appy cost of gcing horseback rid The mages You torq? by qclna horsaback riding The value of your time spent studying Tha cost at horsa rental Pruary Noric 1V2013

Explanation / Answer

1. the correct answer is: $40.

Reason: opportunity cost is the cost associated with the next best alternative forgone. Here.the next best alternative to going horseback riding is studying at the library which is valued at $40.

2. The correct answer is: a)

Reason: here,the next best alternative is working at the part-time job.

Thanks!

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.