Rather Than Go Out to Eat by Yourself,you Decide to Stay

question 145

Essay

Rather than go out to eat by yourself,you decide to stay at home and fix dinner for yourself and your two roommates.Your roommates applaud your decision.Your roommates tell you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry.Is this comment correct?

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Definitions:

Rationing Coupons

Tickets or coupons issued by the government or an organization, allowing the holder to purchase a fixed amount of a scarce commodity or service.

Misallocation

An inefficient distribution of resources in an economy, leading to outcomes where resources are not used in the best possible ways according to the needs and wants of society.

Queuing System

A queuing system is a model used to analyze and manage the process by which customers wait for service or goods, focusing on efficiency and fairness.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.