HELP! Economics question? (1 Viewer)

robbie13

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Hey guys.

Been given this question and was wondering if anyone could help?

”Since I own my own home, housing costs me nothing”. Evaluate this statement using "economics way of thinking".

Thank you in advance
 

kingofgames

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In economics we're always thinking about opportunity cost and economic profit. While accounting wise housing no longer costs you anything. In an economic perspective you are still spending money and time maintaining it and losing possible profits by choosing not to sell it at opportune moments.
 

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