Explain what role opportunity cost plays in the following situations:

a. You are deciding between buying a high-priced flat-screen TV vs. a moderately-priced one. (You must include both the opportunity cost of a high-priced screen and the opportunity cost of the low priced screen.)

b. You are deciding whether to buy a gift online or go to an actual store to buy it. What is the opportunity cost of buying the gift online? What is the opportunity cost of going to the actual store?

c. Your firm is trying to decide whether to allocate part of its budget to prototyping and testing and new product X. What is the opportunity cost of doing this?