Question

A friend comes up to you and offers to give you a free ticket to the local professional team's baseball game that night. You decide to attend the game. The game takes five hours and costs you $15 for transportation. If you had not attended the game, you would have worked at your part-time job for $8 an hour. What is the cost to you of attending the game?

Answer 1

Answer: $55

Step-by-step explanation:

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Opportunity cost of attending the game:

Earning at part time work = $8 per hour × 5 hours

= $40

Transportation cost = $15

Therefore, total opportunity cost of attending the game is as follows:

= Earning at part time work + Transportation cost

= $40 + $15

= $55