Homework answers / question archive / Jason bought a house for US$50 million three years ago, but the price of the house has now risen to 70 million

Jason bought a house for US$50 million three years ago, but the price of the house has now risen to 70 million

Economics

Share With

Jason bought a house for US$50 million three years ago, but the price of the house has now risen to 70 million. Jason can choose to sell the house and turn the money from selling the house into investing in stocks, earning a 4% annual interest rate. However, Jason can also choose to rent out the house and earn a monthly rent of $210,000. If Jason finally decides to use the house for his own use, try to calculate his opportunity cost for one year.

2. Cherry spent $1,280 to buy concert tickets, but due to the request of her friend David, she resold the tickets to May at the original price. Please explain whether there is an opportunity cost for Cherry's decision?