Question

what is the opportunity cost of going to the arcade on Saturday night assuming you could make $8 an hour for four hours of work and you also spend about $25 each time you go to the arcade?

Answer 1

The opportunity cost is $32.

Explanation:

Given information:

Earning for work from home = $8 per hour

Total expenses = $25 each time you go to the arcade

Opportunity cost : It is the value of the second best thing you give up whenever you chose best. In other word "the loss of potential gain from second choice when first is chosen".

In the given condition, the opportunity cost is the cost that you must forgo in order for going to arcade.

Earning in one hour = $8

Number of hours = 4

Earning for four hours of work = 4 × $8 = $32

Therefore the opportunity cost is $32.

Answer 2

$32

Explanation:

Given : you could make $8 an hour for four hours of work and you also spend about $25 each time you go to the arcade

To Find : what is the opportunity cost of going to the arcade on Saturday night

Opportunity cost is the value of something when a particular course of action is chosen. the opportunity cost is what you must forgo in order to get something.

So,the cost what you must forgo in order for going to arcade is the opportunity cost.

Since you make make $8 an hour

So, for four hours of work you make = 8*4 = $32

Hence the opportunity cost is $32