In the Two-Period Utility Maximization Model the Opportunity Cost of One

question 19

Multiple Choice

In the two-period utility maximization model the opportunity cost of one unit of C1 is

• A)one unit of C0.
• B)1 + r units of C0.
• C)1/(1 + r) units of C0.
• D)cannot be determined without more information.

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Definitions:

Ivory

Hard, white material made from elephant tusks and used for carving and making various objects.

Commercial Value

The monetary or exchange value that a good or service has in the marketplace.

Elephant

A large mammal with a long trunk and tusks, known for its intelligence and social behavior, native to Africa and Asia.

Beef

The meat from cattle, regarded as a staple protein source in many cultures around the world.