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

Answer:

1.

Jason had a two choice for him house besides he want to use for his own.

1. To invest the money by selling it

$70 million at 4% annual interest,

After a year he gets $2.8 million interest.

2. To rent out the house at $210000 per month

$210000×12 = $2.52 million per year

So, now as he want use his own house he must giving up with one of the above two possibilities

But the opportunity cost for using house for his own will be $2.8 million , because if he dont want to use the house he will definately sell the house and invest the money at 4% interest because with this possibilities he would get better benefits.

So, opportunity cost for renting his own house is $2.8 million per year.

2.

If cherry resold the ticket at the same price she bought them. Before spend money on ticket she had a choice to spend the money on something that can make profit for her. If it is so, then the that profit she cant gain by spending money on ticket is her opportunity cost.