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Suppose a city block was going to be used for

Question : Suppose a city block was going to be used for : 5143

Suppose a city block was going to be used for a parking lot. The opportunity cost would be lower in a small city because the alternates uses of the block are more varied. greater in New York City because the alternative uses of the block are more valuable. lower in New York City because the alternative uses of the block are more varied. greater in a small city because the alternative uses of the block are more valuable. Suppose Josef is out shopping for fancy cheeses. He has $20 to spend on cheese and wishes to buy two different cheeses, each costing $10 (ignore taxes): The gouda, which Josef values at $15; and The feta, which Josef values at $12. Shortly after he buys the gouda, and before he buys the feta, the choose falls out of a hole in his bag and rolls out into traffic. The cheese is immediately squashed and Josef cannot return it. Should Josef buy a new wheel of gouda? No, because his opportunity cost is high. Yes, because his opportunity cost is low. No, because he's effectively spending $20 on cheese he only values at $15. Yes, because if it was worth buying one time; it should be north buying a second time.

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