Describe the role of opportunity cost in the following scenarios. In particular, explain how opportunity cost can

Question:

Describe the role of in the following scenarios. In particular, explain how can help assign values to goods in these examples.
(a) Instead of working this weekend and earning $100, a student decides to go hiking.
(b) A student decides to go to a private university with tuition of $25,000 per year, though he also was accepted into a state university with in-state tuition of $6500 per year.
(c) Another student, faced with the same choice, decided to go to the state university.
(d) The first student decided to work in the cafeteria for $8.00 per hour and therefore take 5 years instead of 4 years to finish at the private university. The second student made the same decision at the state university.
Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...