Opportunity Cost for the Car Industry

Opportunity Cost for the Car Industry

by Joseph Spears -
Number of replies: 1

I find that we have made an excessive investment in our time and money to develop more and more fancy or helpful gadgets than investing in the efficiency, durability, and ability for longer distance rides in vehicles. Although things like screens in the car can be nice or helpful, the opportunity cost for having these gadgets is investing more money in the efficiency and durability of the car. Nobody needs electronics in their car. We might like having a TV in the vehicle, but it is not a need to have one. We need vehicles that can last longer on the road, like the ability of a car having more car mileage, a car with better fuel efficiency, having less trips to the mechanic, and at the same time being cheaper to make. I would much rather have a car that gets me to point A to point B than some car that has electronics in every inch of the vehicle to make it more pleasing to drive. The opportunity cost of buying a brand new car is not being able to buy that old car that will never need a mechanic to work on.

In reply to Joseph Spears

Re: Opportunity Cost for the Car Industry

by Grayson Kenner -
Yes, I agree. The electronics in your car are very appealing, I do like my heated seat on, during a cold morning. But it would not be very helpful if I was stranded on the side of the road. If car companies did not have to max out their electronics then they would have more time and resources to enhance the vehicles efficiency. By meeting in the middle they would max out the opportunity cost.
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