Analyzing Opportunity Cost Using Credit. Think about the last three major you made. (Reminder: The (3) major

Question:

Analyzing Opportunity Cost Using Credit. Think about the last three major you made. (Reminder: The (3) major purchases were flat screen TV, stove, and living room set)

a. Did you pay cash? If so, why?

b. If you paid cash, what opportunity costs were associated with the purchase?

c. Did you use credit? If so why?

d. What were the financial and psychological opportunity costs of using credit?

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...