Question

Sam has two options this weekend. He could work at his job and earn $9/hour for three hours, or he could go to a show at the theater for that three hours. A ticket to the theater costs $30. What is the opportunity cost of going to the theater?

Answer 1

Answer: $57

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 going to the theater:

Earning at work = $9 per hour × 3 hours

= $27

Theater ticket cost = $30

Therefore, total opportunity cost of going to the theater is as follows;

= Earning at work + Theater ticket cost

= $27 + $30

= $57