Sheldon is trying to decide between purchasing an Xbox and purchasing a PlayStation. Each system has its pros and cons. Sheldon is willing to pay up to $250 for the XBox, which costs $239. He is willing to pay up to $550 for the PlayStation, which costs $529. Regardless of which game system he buys, Sheldon plans to purchase a third-party warranty for $20. Let’s calculate Sheldon’s opportunity cost of purchasing each system.

What is Sheldon’s opportunity cost if he buys the XBox?

What is Sheldon’s opportunity cost if he buys the PlayStation? 

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