Answer to Question #55233 in Microeconomics for urmat
You win \$100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest. What is the opportunity cost of spending the \$100 now?
In one year I get $105, so if I spend $100 now, without putting it in a bank account, the opportunity cost of such step is $105-$100=$5.
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