Q469. This is one of a series of problems (470, 471, 472, 473, 474, 475, 476, 477, 478) relating to the same fictional case: The community of Ourville which is considering some options for creating parks to enhance the quality of life of local residents. The amounts are expressed in simple numbers – e.g., $100 – which you can assume to be referring to realistic amounts – e.g., hundreds of thousands.
(a) As a part of its considerations about the park project, Ourville needs to think about the opportunity costs associated with each tract of land being considered for the park. What is an opportunity cost? You are nominated to explain (BRIEFLY) in terms the public will understand what we mean by opportunity cost:
(b) While discussing the value of the park options to residents the term "willingness to pay" comes up. Explain (BRIEFLY) to the public what this means.