Opportunity Cost

Opportunity Cost

by Hudson Stiver -
Number of replies: 2

Opportunity cost, while not actually stated or brought up in the video, was very prevalent in the midst of the video and was in the discussion and topics being talked about. Due to the fact that cars in the US are held to a certain standard, they often cost more than the average family can afford to buy flat out. While buying or financing a new car is popular option, another option is to buy a used car. Used cars are going to be cheaper and therefore the consumer won't be buying something that loses half of its value as soon as it is driven off of the lot. The opportunity cost found here is that when a consumer buys a used car, they are missing out on buying or financing a brand new car straight off the lot.

In reply to Hudson Stiver

Re: Opportunity Cost

by Ella Callahan -
Do you think that used cars in this sense have more value than a car right off the lot? - I think that while buying something off the lot will always deplete in value as you drive it, a used car will do the same. In a sense a used car will deplete faster than a newer car because of the fact that a used car will have more time for mechanic issues, or accidents.
In reply to Hudson Stiver

Re: Opportunity Cost

by Luke Schwartz -
That's a good way to represent the opportunity cost represented in the video, and I would like to add that even though one is missing out on buying a new car if they decide to purchase an old, it is the best decision for that person.
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