Both an NBA basketball player and a fast-food cook are going to ...

[meagbuch]

Both an NBA basketball player and a fast-food cook are going to graduate school. Who has a higher opportunity cost? Explain.
 
  What will be an ideal response?

Question 2

In the above figure, market equilibrium at point E yields the quantity X. The quantity X is socially optimal amount. The government can achieve the optimal outcome by
 
  A) setting the price at P1.
  B) establishing a tax of P3 - P1 per unit of the good sold.
  C) establishing a tax of P3 - P2 per unit of the good sold.
  D) setting the price at P4.

[lorealeza77]

Answer to Question 1

The opportunity cost is the income lost while going to graduate school. An NBA basketball player typically earns much more than does a fast-food cook so that the opportunity cost of going to graduate school is likely to be higher for the NBA basketball player than for the fast-food cook.

Answer to Question 2

B

[meagbuch]

Thanks for the timely response, appreciate it

[Dominic]

Great answer, keep it coming