suppose koe os trying to decode whether to buy a latte at a nearby coffee shop...
suppose koe os trying to decode whether to buy a latte at a nearby coffee shop amor make coffee at home joe would get 5 dollar worth of value and price will be 3 dollar .jow would get 2.5 dollar worth of value from homemade coffee and it would cost him 1 dollar to make what is the opportunity cost to joe of buying a latte at the coffee shop
Homework Answers
The opportunity cost to Joe of buying a latte at the coffee shop is given by the next best alternative of buying coffee from the coffee shop. The next best alternative is to preparing the coffee at home and the marginal benefit derived from purchasing the coffee at home = Value from the homemade coffee - Cost of preparing the coffee = $2.5 - $1 = $1.5.
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suppose koe os trying to decode whether to buy a latte
at a nearby coffee shop...
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