While fishing in your favorite stream, you glance down and discover a 1-ounce nu

Question

While fishing in your favorite stream, you glance down and discover a 1-ounce nugget of gold. You take it home and discover that a local shop will pay you $1,000 for it. Knowing this, what would the gold cost you to keep?

Question 11 options:

1.Nothing because you did not pay anything for it.

2.$1,000

3.$1,000 minus the joy you get from staring at its shiny beauty.

4.The cost of keeping the gold cannot be determined in this example.

1.Nothing because you did not pay anything for it.

2.$1,000

3.$1,000 minus the joy you get from staring at its shiny beauty.

4.The cost of keeping the gold cannot be determined in this example.

Explanation / Answer

3. Option is correct

Selling the nugget will incur implicit cost that is opportunity cost of selling the nugget. This involves joy you can get from keeping the nugget of gold.

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