2. Jack sold a baseball card collection for $2,500 that he bought a year ago for $2,500. He says, "At least I didn't lose any money on my investment in this baseball card." His economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $2,500, which is $75, if he had deposited the money in a bank. The economist's analysis in this case incorporates the idea of: A. opportunity costs among alternatives, which is $75 here. B. opportunity costs among alternatives, which is $2575 here. C. marginal costs that exceed marginal benefits. D. marginal benefits that exceed marginal costs.

Respuesta :

Answer:

The economist's analysis in this case incorporates the idea of:

A. opportunity costs among alternatives, which is $75 here.

Explanation:

Jack's economist friend is right that Jack lost $75, which represents a 3% return on the $2,500 if Jack had invested it in a bank deposit instead of baseball card.  The opportunity cost is, therefore, this potential benefit which Jack has missed or lost because of Jack's choice of investment.