Question

When computing the opportunity cost of attending a concert you should include Select one: a. the price you pay for the ticket and the value of your time. b. the price you pay for the ticket, but not the value of your time. c. the value of your time, but not the price you pay for the ticket. d. neither the price of the ticket nor the value of your time.

Answer 1

Answer: c. the value of your time, but not the price you pay for the ticket.

Explanation: The opportunity cost is the alternative cost we waive when we make a decision, including the benefits we could have obtained from choosing the alternative option. Saying this, the opportunity cost would be the time invested in the concert, since we could have gone to do other activities at that time.