Suppose You Have Four Choices Go to a Movie,read a Book,watch

question 123

Essay

Suppose you have four choices go to a movie,read a book,watch television,or go to a concert.You choose to go to a movie.The opportunity cost of the movie is ________.

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Definitions:

Market Rate of Return

The average return on investment that is typical for a particular market or industry.

T-bill

Short-term government securities issued at a discount from the face value and maturing at par, used to finance government debt.

Issue Date

The specific date on which a financial instrument is issued or becomes effective.

Simple Rate of Interest

Interest calculated only on the principal amount of a loan or deposit, without compounding.