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Suppose That Rosa Is Considering Migration to Another Country

Question 253

Multiple Choice

Suppose that Rosa is considering migration to another country. To move, she will have to spend $2,000 on transportation and $5,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $300,000. She expects to earn a stream of future earnings of $700,000 in another country. Based on this information, Rosa's implicit cost of migrating is


A) $7,000.
B) $300,000.
C) $307,000.
D) $400,000.

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