1) Opportunity cost- You can spend spring break either at home working for $80 a day for five days or go to Florida for the week if you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food, and miscellaneous expenses will total about $700. What's your opportunity cost of going to Florida?
2) Specialization - Provide some examples of specialized markets of retail outlets. What makes the Web so conducive to specialization?© BrainMass Inc. brainmass.com October 25, 2018, 10:07 am ad1c9bdddf
1) You make a net of $300 ($400 minus expenses of $100), if you stay at home and work five days a week. Further, if you go to Florida, the total expenses will be $700. Hence, the opportunity cost of going to Florida is $1000. ...
This solution calculates opportunity cost via an example. It also discusses the importance of specialization in online retail.
Introduction to Economics 1-2 pg IP
As a manager of a financial planning business you have two financial planners, Phil and Francis. In an hour, Phil can produce either one financial statement or answer 8 phone calls, while Francis can either produce 2 financial statements or answer 10 phone calls. Does either person have an absolute advantage in producing both products? Should these two planners be self-sufficient (each producing statements and answering phones) or specialize? Be sure to show your work.View Full Posting Details