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例题

Question: Opportunity Cost

You are selling your 1996 Mustang.  You have already spent $1000 on repairs. 

At the last minute, the transmission dies.  You can pay $600 to have it repaired, or sell the car “as is.”

In each of the following scenarios, should you have the transmission repaired?  Explain.


A. Blue book value is $6500 if transmission works,$5700 if it doesn’t

B. Blue book value is $6000 if transmission works,$5500 if it doesn’t


解析

Cost of fixing transmission = $600

A. Blue book value is $6500 if transmission works, $5700 if it doesn’t

Benefit of fixing the transmission = $800 ($6500 – 5700).

It’s worthwhile to


例题

Question: Opportunity Cost

You are selling your 1996 Mustang.  You have already spent $1000 on repairs. 

At the last minute, the transmission dies.  You can pay $600 to have it repaired, or sell the car “as is.”

In each of the following scenarios, should you have the transmission repaired?  Explain.


A. Blue book value is $6500 if transmission works,$5700 if it doesn’t

B. Blue book value is $6000 if transmission works,$5500 if it doesn’t


解析

Cost of fixing transmission = $600

A. Blue book value is $6500 if transmission works, $5700 if it doesn’t

Benefit of fixing the transmission = $800 ($6500 – 5700).

It’s worthwhile to

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