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Opportunity cost and specialization

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?

Solution Preview

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. ...

Solution Summary

This solution calculates opportunity cost via an example. It also discusses the importance of specialization in online retail.

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