Question

Ming lives in Seattle and recently bought a $375 ticket to attend a Seattle Seahawks game. He is a huge fan, so even though the ticket is pricey it is well below his willingness to pay of $600. However, as game day approaches, Ming receives an invitation from his friend, Cassandra, to spend the day at the Museum of Pop Culture touring a big exhibit on Marvel superheroes. The museum visit would only cost $75, but Ming (being a big Marvel fan too) would be willing to pay $250. What is his opportunity cost of going to the museum? (Hint: See Q&A 6.1.)

Answer 1

The opportunity cost is the value of next best alternative .in this case, the next best alternative is going to watch match.

The value here will be net benefit that ming would earn,

So the net benefit ming would earn by going to attend the match =600-375=225.

So the opportunity cost of going to the museum is 225.