O See Hint In Chapter 1, you learned that buying and selling textbooks are two s
ID: 1151961 • Letter: O
Question
O See Hint In Chapter 1, you learned that buying and selling textbooks are two separate decisions made at the margin. Textbooks create value both when they are bought and when they are sold. Think about your decision to buy the textbook for this course. You paid $225 for the book, but you would have been willing to pay $450 to use the book for the semester. Suppose that at the end of the semester you could keep your textbook or sell it back to the bookstore. Once you have completed the course, the book is worth only $70 to you. The bookstore will pay you 50% of the original $225. How much total value have you gained?$ 8 9th attempt VIEW SOLUTIONExplanation / Answer
Ans for 10
In first case when we bought this book war paid $225 and it was worth $450 for us, hence gain in case 1 is $225
Similalrly when we sold the book at 0.5*$225=$112.5 and with value for us is $70 then gain 112.5-70=42.5
Hence total gain is 225+42.5=267.5
Ans for 8
Total fees for the college =$10000+$2500+$10000=$22500 for each year and salary offered is $20000 per year
Opportunity cost = salary + saved fees=20000+22500=42500 per year
Opportunity cost for 4 yenara=$170000
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