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 beforehand solutions are provided. II.Problem Set Questions and Solutions 1.Topic 1 The Scope of Economic synopsis i.Question 1.1 According to the definition of fortune cost, the more alternate(a)s that we have given up in undertaking an action, the higher the opportunity cost. enthr splatter ensemble make a critical comment on this control and explain your answer using examples. ii.Solution for Question 1.1 ? exposition of opportunity cost: The opportunity cost of an action is the attachment as of the next-best resource that must be given up in revise to undertake that action. ?Critical comment: This line is inaccurate. Among all the substitutes, the utility(a) that provides the largest benefit is the best alternative, which is the act ion 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 time value 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 the pilot film next-best alternative and the opp! ortunity cost becomes higher. In this case, the statement is true. c)If the value of the additional alternative is higher than that of the conquer 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 define a full essay, order it on our website: OrderEssay.net
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