Answer to Question #273857 in Microeconomics for Junaid

Question

you were planning to spend saturday working at your part-time job but a friend asks you to go skiing

Answer 1

If I go skiing, the expense of skiing and the disruption of earnings from my part-time work will be covered by skiing with mates.

If I went skiing rather than visiting to the library, the expense of skiing could equal the cost of paying to see a movie plus the benefit of the information that could have gotten gained by researching at the archive. The benefit of expertise acquisition, on the other hand, cannot be quantified in monetary figures. The assessment is based on the individual's perspective.

Explanation:

Since funds are scarce but desires are limitless, it is critical to pick among many options while nothing can be purchased. As an outcome, there is an unrealized cost. When an entity selects some other option, the chance cost pertains to the absence of gain connected with that choice. The potential expense of an alternative is the advantage that is offered up in the total cost of the choice.

We are provided two scenarios in which a person decides to go skiing rather than having a part-time work. In other scenario, instead of learning at the library, the person prefers skiing.