The impact on the cost of growing strawberries when a housing developer offers thrice the rate is to be determined.
Answer to Problem 1P
The cost of growing strawberries on one's own land, if a housing developer offers three times of what one thought it was worth of, is the amount that the housing developer is offering for the land.
Explanation of Solution
Costs associated with an action are the payments to be incurred in terms of time, money, etc.
One type of cost is the
Costs:
Costs associated with an action are the payments to be incurred in terms of time, money, etc.
Opportunity cost:
Opportunity cost of an action is the cost of the next best alternative given up.
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Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co