Question

Maradona is, for those of you who don't follow football, history's best football player, as evidenced by his majestic goal against the Brits (do yourself a favour and google it... but after the test, of course). Suppose Maradona had the chance of setting up a football academy, which he would run himself and would occupy all of his time. He could set it up in 86, which was the peak of his career and footballing prowess. The monetary operating costs of running it at that time are fairly low (there is alot of land available, there isn't alot of technology to invest into the academy, etc). Alternatively, he could set it up in 1998, a year after his definitive retirement. At that time land is scarcer, and technology needs are higher, so the monetary operating costs of the academy would be higher. However, an economist argues that it is cheaper for Maradona to run his academy in 98 than in 86.

Question: explain why an economist would claim it is cheaper to run the academy in 98 than in 86.

Answer 1