Question

1. Compare the Opportunity Cost of Buying a New Car with the Opportunity Cost of Going to College?

2. How would you relate one to the other or compare and analyze them separately, assuming that they are not mutually exclusive

Answer 1

Ans :-1)Opportunity cost is the worth of something at a specific sequence of action is chosen, what you sacrifies inorder to get something is a opportunity cost.The opportunity cost of buying a new car means ,if a person buying a new car,that person's opportunity cost is the entire money that the person could have made investing.Opportunity cost going to college is the earning he/she contributed to the working full time for the years he/she was in college.

Ans:-2) The opportunity cost of buying a new car is the entire money that a person invested to buy a car.Opportunity cost of buying a new car is a financial investment.But car is not a financial assets because car lose its value sometimes.Car need maintaince cost,fuel cost and sometimetime car need interest payments to the bank.

Opportunity cost going to college is the sum of a students college expenses.Going to college is a good thing .Going to college a student must have got his tution,textbooks,classrooms,foods,dresses,transportation and so many things .students going to college and investment for education is a good things because it will help in the future.