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Answer in Microeconomics for arsh #113769

Author:
April 21st, 2023

a. Budget line is represented on the graph:

b. Opportunity cost of one ATV is “8 000/12 000 = 2/3” snowmobiles, as money we spend to buy 1 ATV can be alternatively used to buy 2/3 of snowmobile.

c. Analogously, opportunity cost of one snowmobile is “12 000/ 8 000=1.5” ATW

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