Opportunity Cost

Opportunity Cost

by Quinn Mann -
Number of replies: 1

This was a really interesting video to watch. While I agree in part that the rollback of the CAFE standards will provide, in part, to making cars more affordable, I like how the guy goes into greater detail and draws in so many other factors that make cars in the US so expensive. He talks about how safety requirements, which are always advancing, cause cars to continually increase in price. People are finding more and more ways to make cars further advanced, but fail to realize that not everyone wants that. Some people, as he notes in the video, just want a means of transportation that will get them from point A to point B. I also think it is interesting that in the video he touches on the fact that prices might not ever fall significantly, because there are so many other factors such as tariffs, safety standards, and compliance costs that keep the relative cost of a car high in the US. I think opportunity cost can be seen in this video in many different approaches. One simple example of this, not specifically stated in the video, is that when the government decides to rollback on the fuel efficiency standards, we make less progress toward environmental goals. Another example would be that when manufacturers decide to make more electric vehicles to try to meet CAFE standards, they might be selling at a loss, which would likely result in raised prices for all vehicles. 

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