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.
I would like to thank the experts from the bottom of my heart. You saved me when no one else could. Perfect grades on all of the assignments! I do not know how to say thank you enough! You had everything done in less than 12 hours. It's just amazing!