The opportunity cost is the highest-valued activity that you forgo by spending 30 minutes parking your car. Finding a parking space takes about 30 minutes, so you incur an opportunity cost when you park your car. In going to summer school, you will forgo all the goods and services that you could have bought with the income from your summer job ($6,000) plus the expenditure on tuition ($2,000), textbooks ($200), and living expenses ($1,400). The opportunity cost of going to school this summer is the highest-valued activity that you will give up so that you can go to summer school. The opportunity cost of going to school is $9,600 of goods and services. The opportunity cost of the extra 10 points is the movie forgone when you stayed home to study. PARKIN MACROECONOMICS Solutions to Odd-numbered Problems CHAPTER 1 1.
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