Answer to Question #132847 in Microeconomics for azeem

Question

Discuss the items you would include to figure out the opportunity cost of a vacation to Northern Pakistan?

Answer 1

When making any decision, decision makers should be aware of the opportunity costs that accompany each possible action.

The opportunity costs of a vacation to Northern Pakistan:

- a road map to Northern Pakistan;

- the tickets in Northern Pakistan;

- additional costs within Northern Pakistan.

This value of a vacation is contrary to the time that would otherwise be used. Man has two choices to stay in his city or to separate money and go on vacation to Northern Pakistan. In Northern Pakistan, a man will spend a lot of money. Good travel would be the only justification for the money spent.