Report On Problem Set Questions Of Group 1

Report on line Set indecisions of Group 1 I.Introduction This spread over provides explanations and solutions for two problem set disbeliefs on two topics. For separately question, related definitions will be reviewed onwards solutions are provided. II.Problem Set Questions and Solutions 1.Topic 1 The Scope of Economic compend i.Question 1.1 According to the definition of prospect cost, the more alternate(a)s that we have arrogance up in undertaking an action, the higher the opportunity cost. enthr tout ensemble make a critical comment on this control and explain your answer using examples. ii.Solution for Question 1.1 ? explanation of opportunity cost: The opportunity cost of an action is the ascertain as of the next-best alternate(a) that must be given up in revise to undertake that action. ?Critical comment: This assertion is inaccurate. Among all the secondarys, the utility(a) that provides the largest benefit is the best alternating(a), which is the action that should be undertaken. The alternative that generates the second-largest benefit is the next-best alternative, the comfort of which is the opportunity cost.

If another alternative is added to the alternatives, accordingly there are three possible situations: a)If the esteem of the supererogatory alternative is lower than that of the next-best alternative, then this spare alternative is forgone and the opportunity cost remains the same. In this case, the statement in the question is untrue. b)If the value of the additional alternative is higher than that of the next-best alternative still lower than the best alternative, then this additional alternative substitutes th e pilot film next-best alternative and the ! opportunity cost becomes higher. In this case, the statement is true. c)If the value of the additional alternative is higher than that of the insure copy choice, then the additional alternative becomes the action which is undertaken, and the opportunity cost is the value of the original choice and, therefore, is higher. In...If you want to bring a full essay, order it on our website: OrderEssay.net

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