Essay on Opportunity Cost

Submitted By jyw5515
Words: 325
Pages: 2

Opportunity Costs and Hidden Inventions I disagree that I am not wealthy enough to have this Bugatti because in reality, who is wealthy or not wealthy enough to afford what the car is really worth? We really do not know. I believe that the companies who produce these expensive cars only price them as high as they do because they know only a certain percentage of wealthy people will buy them. If the producers of these cars priced them at what they were really worth, very few people would buy them. If these car producers price their cars at a ridiculously high price, a small percentage of wealthy people will still buy these cars. Moreover, no matter what price these cars are marked for, not many will be bought. A company may be thinking, for example, if only 100 of these cars will be sold regardless of the price; why not jack up the price as high as possible? The company may lose a few sales here and there from buyers with a spending limit, but the majority of the people buying these cars most likely do not have a spending limit. With companies pricing items higher than what they are really worth, it is hard to decipher who is wealthy enough to own an item or not. Consequently, it does not really even matter who has the car if they do not even have any expenses to pay for it. Companies may also be jacking up the price of these cars so only a certain population of wealthy people will buy them, which in turn sets a precedent for the price of what people are willing…