Suppose the annual cost of the Iron Dome is $50 million. What is the opportunity cost of

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Suppose the annual cost of the Iron Dome is $50 million. What is the opportunity cost of this defense spending in terms of private housing assuming a new home can be constructed for
(a) $100,000,
(b) $150,000?
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,...
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Essentials of Economics

ISBN: 978-1259235702

10th edition

Authors: Bradley Schiller, Karen Gebhardt

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