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兩條簡單mc 關於opportunity cost

Peter lives is his own house which is worth $10 million. He can rent out the house at $50000 per month. He can also sell the house and put the money in a bank at an interest rate of 5% per year.

1. What is the opp. cost to Peter if he intends to live in the house?

2. What is the opp. cost to Peter of owning the house?

a) $10million

b) $500000 a year

c) $20000 a month

d) There is no opportunity cost because he lives in his own house.


I don't know the differences between them.

Please explain.

更新 2:

I'm sorry. Your choices are different from the answer.

The answer for the first one is C while the second one is B.

In fact, these two mc are found in Kevin Ko's 100MC 1. (Q14 and Q15)

But I also don't know why the answer are B and C......

1 個解答

  • 1 十年前

    Since opportunity cost mean whatever must be given up to obtain some item, it is use to calculate the cost when we give up some item to get another item. For example there are two items A and B. Whenever you choose A you must give-up B or when you choose B you must give-up A. In the case you choose A, the opportunity is B. In the case you choose B, the opportunity is A


    1. The opp cost is the money Peter put into bank after he sold his house. Therefore, the

    answer is a =$10 million

    2. the answes is d becasue there is nothing for Peter to give-up