Question

You are given a ticket to a Bob Dylan concert with a face value of $50. You only value the ticket at $40, sell it to a friend for $40, and attend a U2 concert priced at $60. The opportunity cost of attending the U2 concert is

Answer 1

Opportunity cost = $60

Step-by-step explanation:

Data provided:

Face value of the concert = $50

Ticket value = $40

Selling price of a ticket = $40

U2 concert price = $60

Now the opportunity cost of attending the U2 concert is

= U2 concert price

= $60

As we have to find out the opportunity cost of U2 so we considered only the price which is charged to attending the U2 concert