ohn invested $12,000 in the stock of Hyper Cyber Eight years later, Hyper Cyber's shares reached S125,000,but John held onto the shares in the belief that their price would double in the next five years.Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If theshares were sold and the proceeds invested in another investment, they would likely ean 5% per annum.Which of the following terms and values is correct?$125,000 is the opportunity cost of selling the shares today$12,000 is a sunk cost$250,000 is the opportunity cost$2000 is the opportunity costNone of the above

Economics is a branch of social science that describes and analyzes the behaviors and decisions…

ohn invested S12.000 in the stock of Hyper Cyber Eight years later, Hyper Cyber's shares reached $125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is S4,000. If the shares were sold and the proceeds invested in another investment, they would likely eam 596 per annum. Which of the following terms and values is correct? $125,000 is the opportunity cost of selling the shares today S12.000 is a sunk cost $250,000 is the opportunity cost S2000 is the opportunity cost None of the above

ohn invested S12.000 in the stock of Hyper Cyber Eight years later, Hyper Cyber's shares reached $125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is S4,000. If the shares were sold and the proceeds invested in another investment, they would likely eam 596 per annum. Which of the following terms and values is correct? $125,000 is the opportunity cost of selling the shares today S12.000 is a sunk cost $250,000 is the opportunity cost S2000 is the opportunity cost None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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