Question

Shannon is driving in downtown santa fe. She is not very familiar with the area and is running late for her appointment. She heads to a nearby paid parking lot and is told that it costs $10 to park. Shannon is irritated by the price. Although there are likely other paid parking lots that are less expensive, shannon pays the price to park there. Different cost considerations impacted shannon's decision, but clearly one stood out over all the others. Which cost exerted the most influence over shannon's decision to park in the $10 parking lot?

Answer 1

Opportunity Cost is the cost that exerted the most influence on Shannon's decision to park in an expensive parking lot.

In this scenario, Shannon was getting late for her appointment and she had to park her car as soon as possible. She found a parking lot which demanded more money to park the car than the usual rate of parking cars in parking lots. She got irritated by the higher price of parking lot. But she parked her car in that lot. This is the Opportunity Cost that she paid to meet her appointment. So she chose to spend more money over getting late for the appointment. So she had to pay the cost to be on time for the meeting. And this is the Opportunity Cost.

Answer 2

Answer: The non-monetary cost of time or the opportunity cost of time

Step-by-step explanation: Shannon was driving in downtown santa fe. Because she was not very familiar with the area she got late for her appointment. Although there were other less expensive options of parking the car, Shannon choose to park her car in the $10 parking as she did not wanted to waste more time in looking up for a new parking. This clearly means that Shannon wanted to save the time so that she can be on time for her appointment.

Therefore, the non-monetary cost of time influenced Shannon's decision to park in the $10 parking.