Question 1
You own
American Sniper on DVD. The opportunity cost of watching this DVD for the fourth time
◦ is zero, since you own it.
◦ is one-fourth the cost of the DVD, as this is the fourth time you have watched it.
◦ is the value of the alternative use of the time you spend watching the DVD.
◦ must be the same as the opportunity cost of watching it the first time.
Question 2
Opportunity cost is
◦ what we give up to get something else.
◦ marginal cost divided by total cost.
◦ the same as real cost.
◦ All of these.