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Chapter 2: Q 2 (page 45)

If you receive a ticket to a concert at no charge, what, if anything, is your opportunity cost of attending the concert? How does your opportunity cost change if miserable weather on the night of the concert requires you to leave much earlier for the concert hall and greatly extends the time it takes to get home afterward?

Short Answer

Expert verified

The opportunity cost of attending the concert could be rest taken, time spent with family at home.

The opportunity cost will be the time foregone spent at home instead of time for reaching the concert and then attending the concert and the time to reach home afterward.

Step by step solution

01

Step 1. Opportunity Cost.

Opportunity cost is the opportunity foregone to gain satisfaction from the next best alternative among the available choices.

02

Step 2. Reason.

The opportunity cost of attending the concert could be rest taken, time spent with family at home.

The opportunity cost will be the time foregone spent at home instead of time for reaching the concert and then attending the concert and the time to reach home afterward.

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Most popular questions from this chapter

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