Short Question: Discovery of Relics

Question:

Explain how each of the following affects the opportunity cost of constructing a new railway to the MTR corporation.

(a)   The discovery of relics (古蹟) at the construction site  (2 marks)

(b)   The rising difficulties of construction have delayed the completion of the project to one year later.  (2 marks)

Answer:

(a)   Increases (1)

The construction site has a new alternative, of which the value is higher the original highest valued option forgone. (1)

(b)   Increases (1)

There involves extra time resources forgone which has valuable alternative use, thereby raising the full cost. (1)