Chapter 1 Watch, Respond, Reply

     The idea of opportunity cost shows up all over this video. I think the biggest and most important way it shows up is in regards to the government's regulations to the auto manufacturing industry. While the government's regulations towards fuel economy and safety features may have good intentions, they are actually driving the prices of vehicles up. Since there are so many guidelines and restrictions for manufacturing vehicles, companies have to spend a substantial amount of effort, time, and money to meet those standards. However, since these companies are spending more time and money on features to improve safety and fuel economy, they have to raise their prices to make a profit. In a way, they are indirectly forced to raise their prices. Furthermore, they lose time and resources that could have been put towards other features that consumers desire. Overall, these government guidelines are creating more opportunity costs and actually end up driving the price of vehicles up.