I. Introduction - California State University, Northridge
price ratio is the opportunity cost of a unit of x, in terms of y. Continuing the example: Suppose you reduce your number of concerts from 5 to 4. That means you have $30 to spend on films instead. Dividing $30 by $10 (the price of a film), we find that you can buy 3 more films. Thus, 3 is the opportunity cost of a concert in terms of films. ................
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