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Old 05-11-2008, 10:50 PM   #4 (permalink)
pevdoki1
Preparing for MN winters
 
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Join Date: May 2006
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Quote:
Originally Posted by jenizaro View Post
In B the "price of X in terms of Y" is indeed grater than the opp cost of X because the latter is zero.
This is not correct. With the same resources you used to produce the 25 units of x, you could have been producing 50 units of y, so the opportunity cost of x is clearly nonzero. "There is no free lunch."
_ _ _ _ SIG _ _ _ _
"Since it befalls, that in most instances
Current opinion leans to false: and then
Affection bends the judgment to her ply."

Dante Alighieri
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