Let’s assume that our inheritor (from the example above) chooses to purchase $15,000 of stock. That $15,000 is a sunk cost, spent to purchase the stock regardless of whether it’s sold or held. The opportunity cost is the 5% of the CD, representing what he could have earned if th...
Example #4: A college student has to decide between studying for their chemistry final or enjoying a night out with his friends. The opportunity cost of studying for the final is foregoing a night with his friends, while the opportunity cost of going out with his friends is the benefits of...
ExampleII Theopportunitycostofcollegeattendanceincludes: thecostoftuition,books,andsupplies,foregoneincome(thisisusuallythelargestcostassociatedwithcollegeattendance),andpsychiccosts. Whataboutroomandboard?ExampleIII: Opportunitycostofattendingamovie: opportunitycostoftickets...
What will be the opportunity cost of Trump's presidency? What is an example of an opportunity cost when buying a new car? What are the opportunity costs of wasting time? What are the explicit and implicit costs of attending college?
Example: Suppose that you own a building that is worth $100,000 today and is expected to be worth $100,000 one year from today. If the interest rate is 10%, what is the opportunity cost of using this building for one year? Example II The opportunity cost of college attendance includes...
Ok, here's an example of a choice that you have in common with the rest of the class: you opted to go to college. 好吧,下面是你的选择和其他同学相同的例子:你选择上大学。 What is the full cost of that decision? 这个决定的全部成本是多少?
Example of Opportunity Cost An executive’s stock options have just become vested. He must now choose one of two mutually exclusive actions. He can sell the options outright for $50,000 (the explicit cost) or convert them to 5,000 shares of his company’s stock at $10 per share. ...
The opportunity cost in this situation would be not having fun by going with one’s friends. The benefit is doing better in school by getting better grades. An example of opportunity cost in my life would be Governor's School at SouthSide Virginia Community College in Keysville, Virginia. I...
机会成本 Opportunity Cost OpportunityCost TheNextBestAlternative TheOpportunityCostofdoingsomethingisthevalueofthenextbestalternativeyougiveup.Whatistheopportunitycostofinvesting$500inanewstereosystem?Whatistheopportunitycostofgoingtocollege?Opportunitycostvariesfrompersontoperson Whatwouldyouhavepurchasedifyoudidnot...
1DThe opportunity cost of something is the cost of other things a person gives up inorder to get something. To use a simple example, the opportunity cost of a personeating chicken for dinner might be his choice of having steak. The opportunity costof college, for instance, consists of both...