Three friends, Joe, John and Jack, establish a firm JJJ that makes gadgets and tutor economics students. If they all work, in one hour they can produce the following combinations of economics tutorials (ET) and gadgets (G): (0,30), (1,24), (2,14) and (3,0).
A.Compute the opportunity cost of a gadget, when 0, 1 and 2 tutorials are produced.
B.What could explain the increase in the opportunity cost when more gadgets are produced?
Show your work, please!
A.Compute the opportunity cost of a gadget, when 0, 1 and 2 tutorials are produced.
B.What could explain the increase in the opportunity cost when more gadgets are produced?
Show your work, please!