In comparing the opportunity cost of buying a new car with the opportunity cost of going to college, how would you relate one to the other or compare and analyze them separately, assuming that they are not mutually exclusive?

A comparison of the opportunity costs of buying a new car and going to college includes the monetary expenses, the difference between an object and an experience, and the emotional and psychological costs. All these factors have independent characteristics which can be analyzed separately as well as aspects that support relating them to each other.

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The opportunity costs of buying a new car and going to college can be compared in terms of the actual money required for both expenditures, but also in regard to the significant differences between a material object and an experience that brings benefits while it is happening and afterward. The emotional and psychological costs of both expenditures also may be taken into account. Assuming that the expenditures are not mutually exclusive enables one to analyze the ways that they could interact. For example, a college student may or may not need a car, depending on their school’s location.

Opportunity costs...

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