Question

It’s Friday night. You already have a ticket to a concert, which cost you $30. A friend invites you to go out for a game of paintball instead. Admission would cost you $25, and you think you’d get $25 worth of enjoyment out of it. Your ticket is nonrefundable.

Question 5 (of 10) to a concert, which cost you $30. A friend invites you to go out for a game of paintball inste ble. g paintball V (Click to select) the $30 you paid for the concert ticket. the $5 difference between the concert ticket and the paintball cost. the $25 that paintball would cost the enjoyment of the concert (since the $30 cannot be recovered) rces Leaming Objective: 01-02 Explain the economic concepts of opportunity cost and marginal decision making Section: Opportunity .cost

Answer 1

Solution: The enjoyment of the concert (since the $30 can not be recovered).

Opportunity cost is the amount of output that is foregone from an alternative use of the resources. Since output of both processes i.e. concert and playing paintball is enjoyment, the enjoyment from concert is foregone. Hence it is the opportunity cost of playing paintball.