Suppose that adding a new disc drive to your computer increases its value by $100.The disc drive costs $75 and takes you 2 hours to install.If your wage from your job is $6 per hour then the net benefit of installing the disc drive is
A) $13
B) $19
C) $25
D) $88

Question

Quizplus · Accepted Answer

The net benefit is calculated by subtracting the total cost (including the opportunity cost of your time) from the total value added. The disc drive adds $100 in value, costs $75, and the opportunity cost of your time (2 hours at $6 per hour) is $12. So, the net benefit is $100 - $75 - $12 = $13.

Suppose That Adding a New Disc Drive to Your Computer