Susan is inviting John to have lunch buffet and the buffet price is $330 per person....

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Susan is inviting John to have lunch buffet and the buffet price is $330 per person. If John joins the buffet, he has to give up his time for having movie with his family. Define opportunity cost. What are the two components of total opportunity cost? What is John's total opportunity cost of having lunch buffet with Susan? Explain. If the buffet price increases by 10%, identify and explain the type of incentive that could affect John's decision on having lunch buffet with Susan. (8 marks) Susan is inviting John to have lunch buffet and the buffet price is $330 per person. If John joins the buffet, he has to give up his time for having movie with his family. Define opportunity cost. What are the two components of total opportunity cost? What is John's total opportunity cost of having lunch buffet with Susan? Explain. If the buffet price increases by 10%, identify and explain the type of incentive that could affect John's decision on having lunch buffet with Susan. (8 marks)

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Opportunity cost is the cost of a decision that is measured in terms of the value o... View the full answer