Q1. You bought two new CDs with the last $30 in your checking account, and your next payday is on Monday. What is the opportunity cost of these CDs? The difference between the cost to produce the CDs and the price you paid for them spending $30 on two new CDs spending $30 on dinner and a movie with your friends this Saturday night knowing you are the first of your friends to have these CDs.
Q2. When a country allows free trade, the before-trade domestic price of pineapple in the United States is $500 per ton. The world price of pineapple is $600 per ton. The United States is a price-taker in the pineapple market.