Question: During a holiday party at work, you pay $2 to buy a raffle ticket for a 160-gigabyte iPod. You win the drawing. Based on a

During a holiday party at work, you pay $2 to buy a raffle ticket for a 160-gigabyte iPod. You win the drawing. Based on a little research online, you discover that the going rate for a hardly used 160-gigabyte iPod is $200.

a. What was the opportunity cost of acquiring the iPod?

b. What is the opportunity cost of choosing to keep the iPod?

Step by Step Solution

★★★★★

3.50 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The opportunity cos... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Principles Questions!

For the frame and loading shown, draw the free-body diagram(s) needed to determine the components of all forces acting on member ABC. 4 ft 20 kips

Alice, the chair of the School of Accountancy, entertains the faculty at her home each semester and has a holiday party at the end of December for the faculty and their families. When a faculty...

Ernest Fung is a recent business school graduate and budding entrepreneur. Ernest thinks that hot, fresh, and delicious cookies available all day long on university campuses is a surefire way to make...

Noah and Joan Arcs Tax Return Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311. Noah was born on February 22, 1983 and Joan was born on July 1,...

Read the following case study: At the end of 2014, Best Buy was one of the largest retailers in the United States, with over 1,400 domestic stores, a strong web presence, and a trusted brand name....

Apple Pay Will Apple pay be a huge success with consumers? Why or why not Why did banks agree to partner with apply for apple pay in the US? Are retailers excited about Apply pay? Why or why not?...

1.Describe the competitive position of Best Buy relative to its main competitors. 2.What is Best Buy's business-level strategy? What are its main value and/or cost drivers? 3.Is Best Buy's strategy...

Criteria Exemplary 6 points Accomplishe d 4.8 points Developing 3.6 points Beginning Minimum Below Standards 2.4 points 1.2 points Formulated, wrote, interpreted, argued, and evaluated...

the forces controlling its profitability (e.g., Five Forces analysis). Is Best Buy positioned for long-term profitability? Best Buy Co., Inc. By 2017, the value of Best Buy's stock climbed over 200...

Branford Jones Application 1 Question 1 I propose an event for raffles selling. This is a common revenue raising event for many charitable organizations like mine. Raffle event is a viable one for...

What is the advantage of using structured English to communicate with people in the organization?

Mallovia has two tax brackets. The first $20,000 in income is taxed at a 10% marginal rate, and income above $20,000 is taxed at a 30% marginal rate. All incomeearned income and nominal interest,...

The population of a town with a 2 0 1 6 population of 9 9 , 0 0 0 grows at a rate of 1 . 9 % per year. a . Find the rate constant k and use it to devise an exponential growth function that fits the...

Assignment Description: You are an investment advisor for a large investment advising firm in Australia. A client wants to invest a substantial amount of money in either Woolworths Group Ltd or a new...

Assume stock A costs $100 at t = 0 in a two-period world. There are two scenarios 1: good and bad. In the good scenario the stock price rises to 120 dollars and in the bad scenario stock price...

Find the inverse of the following n x n lower triangular matrix, 1 x A = 1 I x 27-2 1 r 1 0 1 z 1

If you know that the rate of Iraq's oil reserves is 148 billion barrels, and that the average OPEC reserve is 1080 billion barrels, and Iraq's oil production is 4 million barrels per day, OPEC...

Explain the link between scarcity and each of the following: (a) choice, (b) opportunity cost, (c) the need for a rationing device, and (d) competition.

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 7 percent, -12 percent, 11 percent, 38 percent, and 14 percent. Required: a. The arithmetic average...

General requirement is to solve by hand and try to solve without using a compiler. Exercise dynamic memory allocation 1.) Consider you want to dynamically allocate memory for an array of arrays,...

Jerri has $ 5 0 , 0 0 0 in taxable income this year. She has not yet used any expensing. How much could she lower her taxable income if she could take full advantage of expensing?