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Answer to Question #66163 in Microeconomics for usman
Question #66163
Which of the following decisions has the greater opportunity cost? Why?
a. A decision to use an undeveloped lot in Tokyo's financial district for an apartment building.
b. A decision to use a square mile in the desert for a gas station.
what is the answer kindly tell me
Expert's answer
a) Apartment in Tokyo will have the highest opportunity cost, because Tokyo has the highest land prices.
b) Has a very low opportunity cost, because the land is a desert has very low value.
b) Has a very low opportunity cost, because the land is a desert has very low value.
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