Question

as we learned in the video, 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 $260 for the xbox, which costs $239. he is willing to pay up to $560 for the playstation, which costs $529. regardless of which game system he buys, sheldon plans to purchase a third-party warranty for $20. lets calculate sheldons opportunity cost of purchasing each system.
4th attempt
part 1 (1 point)
what is sheldons opportunity cost if he buys the xbox? $
part 2 (1 point)
what is sheldons opportunity cost if he buys the playstation? $

Explanation:

Step1: Define opportunity cost logic

Opportunity cost of choosing an option = Net benefit of the best alternative option. Net benefit = (Willingness to pay) - (Total cost of alternative).

Step2: Calculate total cost for each system

Total cost of Xbox = $239 + $20 = $259
Total cost of PlayStation = $529 + $20 = $549

Step3: Compute net benefit of PlayStation (for Xbox opportunity cost)

Net benefit of PlayStation = $560 - $549 = $11
Opportunity cost of Xbox = Net benefit of PlayStation + Total cost of Xbox = $259 + $11 = $270

Step4: Compute net benefit of Xbox (for PlayStation opportunity cost)

Net benefit of Xbox = $260 - $259 = $1
Opportunity cost of PlayStation = Net benefit of Xbox + Total cost of PlayStation = $549 + $1 = $550

Answer:

Part 1: $270
Part 2: $550