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Opportunity cost

 
 
Reply Sun 8 Nov, 2015 09:40 pm
What would it be the opportunity cost for the government of imposing taxes upon cigarettes?
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Reply Mon 9 Nov, 2015 10:42 am
@martucaceres,
I won't give you the answer, but I will help -

Opportunity cost is the value of the next-highest-valued alternative use of that resource.

So say you are a farmer - you grow wheat, the opportunity cost would then be another crop you could grow in place of that - for instance corn.

So you need to think of a higher or next highest alternative for this resource.
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