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Chapter 1: Problem 7

College football attendance, especially student attendance, has been on the decline. In \(2016,\) home attendance at major college football games declined for the sixth consecutive year and was the lowest since 2000 . The opportunity cost of engaging in an activity is the value of the best alternative that must be given up to engage in that activity. How does your opportunity cost of attending a game compare with the opportunity cost facing a college student 15 years ago? Can this change account for the decline in college football attendance? Briefly explain.

Short Answer

Expert verified
The opportunity cost of attending a college football game has arguably increased over the past 15 years due to factors like the rise of convenient entertainment alternatives, increased real costs of attending a game, and changes in lifestyle or priorities. This increased opportunity cost could indeed be a contributing factor to the observed decline in football game attendance.

Step by step solution

01

Understanding Opportunity Cost

Opportunity cost is an economic term that represents the potential benefits an individual, investor or business misses out on when choosing one alternative over another. Here, the hypothesis is that the opportunity cost of attending a college football game has increased over the years, thus leading to a decline in attendance.
02

Compare Opportunity Costs

Comparing opportunity costs involves analyzing how the available alternatives to attending a football game have changed over the past 15 years. This could involve the growth of entertainment alternatives (availability of more varied forms of entertainment, increase in academic pressure, shift in youth interests), increased costs for attending a game (transportation, ticket prices, etc.), or changes in lifestyle and time management.
03

Relate Change in Opportunity Costs to Decline in Attendance

Based on the comparison analysis, relate if an increase in opportunity cost over the years could be a reason for the decline in attendance. For example, if the increased availability and convenience of online streaming services provides an inexpensive and comfortable alternative to attending the game in person, this could increase the opportunity cost of going to the game, thus decreasing the attendance.

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