- Recently, I was faced with the decision after a 3 month promotional HBO free trial to either purchase the subscription ($6.99/month) or maintain my current option of basic cable and internet ($109/month).
What other alternative(s) did you have?
- Another alternative would have been to subscribe to the package inclusive of all Premium Channels at a discounted rate instead of just HBO ($20/month).
What was the opportunity cost of your choice?
- The opportunity cost of choosing to subscribe to HBO was the increase in monthly cable bills ($115.99/month) which will ultimately reduce money allocated for living expenses and other operational costs.
What criteria did you use to make the choice? Did utility play a part in your decision? Explain.
- If I decided to maintain basic cable, I would not be able to enjoy the variety of recent blockbuster movies offered on HBO. Utility played a significant role in my decision to subscribe to HBO. During the three month trial period, I was extremely impressed by the high level of quality movies, series and documentaries. This ultimately influenced my decision to permanently keep the subscription.
