1. Calculate, using the best estimates you can:

a. Your opportunity cost of attending college.

b. Your opportunity cost of taking this course.

c. Your opportunity cost of attending yesterday's lecture in this course.

2. You rent a car for $29.95. The first 150 miles are free, but each mile thereafter costs 15 cents. You plan to drive it 200 miles. What is the marginal cost of driving the car?

3. Economists Henry Saffer of Kean University, Frank J. Chaloupka of the University of Illinois at Chicago, and Dhaval Dave of Bentley College estimated that the government must spend $4,170 on drug control to deter one person from using drugs and the cost that one drug user imposes on society is $897. Based on this information alone, should the government spend the money on drug control?

4. What is the opportunity cost of buying a $20,000 car?

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1 a My opportunity cost of attending college is the ultimate sacrifice I must make by attending the ... View the full answer