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.
2nd attempt
part 1 (1 pt)
what is sheldons opportunity cost if he buys the xbox? $
part 2 (1 pt)
what is sheldons opportunity cost if he buys the playstation? $

Explanation:

Step1: Define opportunity cost logic

Opportunity cost of buying one system is the net benefit (willingness to pay minus total cost) of the forgone system, plus the total cost of the chosen system.

Step2: Calculate total cost for each system

Xbox total cost: $\$239 + \$20 = \$259$
PlayStation total cost: $\$529 + \$20 = \$549$

Step3: Calculate net benefit of PlayStation

Net benefit = Willingness to pay - Total cost
$\$560 - \$549 = \$11$

Step4: Opportunity cost of Xbox

Opportunity cost = Xbox total cost + PlayStation net benefit
$\$259 + \$11 = \$270$

Step5: Calculate net benefit of Xbox

Net benefit = Willingness to pay - Total cost
$\$260 - \$259 = \$1$

Step6: Opportunity cost of PlayStation

Opportunity cost = PlayStation total cost + Xbox net benefit
$\$549 + \$1 = \$550$

Answer:

Part 1: $\$270$
Part 2: $\$550$