Anonymous
Anonymous asked in 商業及金融其他 - 商業及金融 · 1 decade ago

經濟科 Opportunity costs 一問〈緊急 - 10分〉

The gasoline company announced through TV news that the price of gasoline would rise after midnight.It said that the increase in price was owing to the fact that the price of crude oil was rising.

Jack,after watching the news,rushed to the gasoline station and wanted to fill his car with gasoline.However,he found that there was already a long queue of cars waiting for filling their cars.Finally he paid $200 for the gasoline.

Update:

Later,when Jack talked with his friends,James,he found that James had also gone to the station.Moreover,James spent the same amount of time and money as Jack in getting gasoline.

Do the opportunity costs for Jack and James in obtaining gasoline the same?Explain.

(5 marks)

Update 2:

請講解一下問題和解答 !! 緊急 !!

無限感激 !!

1 Answer

Rating
  • 1 decade ago
    Favorite Answer

    Opportunity cost is the highest valued option forgone.

    The opportunity cost for buying gasoline are the price $200 and the option they gave up as result of the time spent for queue.

    Although the amount of time spent are the same, the value of the time for Jack and James may not be the same.

    For example, Jack planned to sleep and James planned to watch TV at that moment. Therefore, the options they gave up are actually sleeping for Jack and watching TV for James. In conclusion, the opportunity cost for Jack and James in getting gasoline may not be the same.

    • Login to reply the answers
Still have questions? Get your answers by asking now.