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Question
During a holiday party at work, you pay to buy a raffle ticket for a 160-gigabyte iPod. You win the drawing. Based on a little research online, you discover that the going rate for a hardly used 160-gigabyte iPod is .
b. What is the opportunity cost of choosing to keep the iPod?
Solution
VerifiedAnswered 1 year ago
Answered 1 year ago
b. People value things more after they own them. By choosing to keep the iPod the opportunity costs because we were able to sell it. I don't think about the things we keep this way. By keeping things we bear the opportunity cost equal to that when someone would pay for it. We would get $ 200 for the iPod, so why keep it if we're going to pay $ 200 for maintenance? If we thought clearly about the opportunity price, we would sell the iPod.
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