Question

How would you solve this..

Suppose you own an outdoor recreation company and you want to purchase ATVs for

your summer business and snow mobiles for your winter business. Your budget for new vehicles this year is $240 000, ATVs cost 8000 and snowmobiles cost 12 000.

a) What is the opportunity cost of one ATV

b) What is the opportunity cost of 1 snowmobile

c) does the opportunity cost of one ATV depend on how many you purchase?

Please explain!

Answer 1

Answer:

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