A consumer must decide between purchasing a new cell phone or renting a new car. Why might determining the opportunity cost be uncertain?
A. The cost to the producer for making the items is not known to the consumer.
B.The benefit of each choice is not easily quantified, so the comparison can be vague.
C. The price of the cell phone or car rental might change.
D.There is no uncertainty because the consumer has all the required information.
B. The benefit of each choice is not easily quantified, so the comparison can be vague.
Which of the following is considered a natural resource?
A. labor
B. food products
C. water
D. capital
C. water
The correct answer is B. The benefit of each choice is not easily quantified, so the comparison can be vague.
Determining the opportunity cost can be uncertain because it involves comparing the benefits of two different choices. In this case, the consumer must assess the benefits of purchasing a new cell phone versus renting a new car. However, the benefit of each choice is subjective and not easily quantifiable.
To determine the opportunity cost, the consumer needs to consider the potential benefits they would receive from each option. Some factors to consider might include the usefulness of the cell phone in everyday life, the convenience and freedom of having a personal vehicle, the cost of maintaining and operating a car, and the ability to stay connected and productive with a new cell phone.
Since these benefits are subjective and can vary from person to person, it can be challenging to make a direct comparison. The consumer may have to weigh the importance of each benefit and make a decision based on their personal preferences and circumstances.
In summary, determining the opportunity cost between purchasing a new cell phone or renting a new car can be uncertain because the benefits of each choice are not easily quantifiable, making it challenging to make a clear and objective comparison.