Burgers and Bus Tickets: Understanding Opportunity Cost in Economics
How can we apply the concept of opportunity cost to Alphonso's budget constraint?
Calculate the price of the sleeper fare. How much is the total cost of meals on the train? What is the total cost of the taxi fare? What is the total cost to visit the college if he takes the coach?
A) Sleeper fare: $, Meals cost: $, Taxi fare: $, Total cost: $
B) Sleeper fare: $, Meals cost: $, Taxi fare: $, Total cost: $
C) Sleeper fare: $, Meals cost: $, Taxi fare: $, Total cost: $
D) Sleeper fare: $, Meals cost: $, Taxi fare: $, Total cost: $
Understanding Opportunity Cost in Economics
The provided details do not include information to calculate total costs for sleeper fares, meals, taxi fares, or visiting the college by coach. Instead, the concept of opportunity cost is discussed using the example of Alphonso's budget constraint for burgers and bus tickets.
Explanation:
The information provided does not contain specific data about sleeper fares, meal costs, taxi fares, or the cost to visit the college by coach. To calculate the total cost of any scenario, we need detailed information regarding individual prices and the quantities of services used. Without this information, it is not possible to provide a precise answer to the student's question. However, we can explore the concept of opportunity cost as illustrated by Alphonso's tradeoff between burgers and bus tickets.
For Alphonso, facing a budget constraint of $10 per week and with bus tickets costing 50 cents each, one burger's true cost is the four bus tickets he would have to sacrifice to stay within budget, highlighting the concept of opportunity cost in economics.
If the price of bus tickets were to increase to $1, while the price of burgers remained at $2, Alphonso's opportunity cost for bus tickets would increase because he would be able to afford fewer tickets with the same budget, emphasizing how prices affect budget constraints.