as sheldon is trying to decide between purchasing an xbox and purchasing a playstation. each system has its…

as 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 $300 for the xbox, which costs $249. he is willing to pay up to $320 for the playstation, which costs $299. sheldon plans to purchase a third - party warranty for $20. lets calculate sheldons opportunity cost of purchasing.\npart 1 (1 point)\nwhat is sheldons opportunity cost if he buys the xbox? $\npart 2 (1 point)\nwhat is sheldons opportunity cost if he buys the playstation? $\npart 3 (1 point)\nwhat if sheldon becomes so overwhelmed with having to decide on a game system that he walks away without purchasing anything at all. does he still experience an opportunity cost?\nchoose one:\na. no\nb. yes

as 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 $300 for the xbox, which costs $249. he is willing to pay up to $320 for the playstation, which costs $299. sheldon plans to purchase a third - party warranty for $20. lets calculate sheldons opportunity cost of purchasing.\npart 1 (1 point)\nwhat is sheldons opportunity cost if he buys the xbox? $\npart 2 (1 point)\nwhat is sheldons opportunity cost if he buys the playstation? $\npart 3 (1 point)\nwhat if sheldon becomes so overwhelmed with having to decide on a game system that he walks away without purchasing anything at all. does he still experience an opportunity cost?\nchoose one:\na. no\nb. yes

Answer

Explanation:

Step1: Define opportunity - cost concept

Opportunity cost is the value of the next - best alternative forgone.

Step2: Calculate opportunity cost for Xbox

If Sheldon buys the Xbox which costs $249 and he is willing to pay up to $300 for it, and the next - best alternative (PlayStation) costs $299 and he is willing to pay up to $320 for it. The opportunity cost of buying the Xbox is the net benefit of the PlayStation. The net benefit of the PlayStation is $320 - $299=$21.

Step3: Calculate opportunity cost for PlayStation

The net benefit of the Xbox is $300 - $249 = $51. So the opportunity cost of buying the PlayStation is $51.

Step4: Calculate opportunity cost of not buying

If he walks away without buying anything, the opportunity cost is the net benefit of the best - alternative among the two consoles. The net benefit of the Xbox is $300 - $249=$51 and of the PlayStation is $320 - $299 = $21. So the opportunity cost of not buying is $51.

Answer:

Part 1: 21 Part 2: 51 Part 3: 51