Question

Lindsay purchased a raffle ticket for $5. just before the grand prize drawing two people tried to buy her ticket. the first person offered $30, and another offered $65. what is lindsay's opportunity cost of keeping the raffle ticket?

Answer 1

Lindsay purchased the raffle ticket for $5. Now two persons tried to buy her ticket. One person offered her $30 and the other one offered her $65. The person who is offering her $65 is making the best deal for her. If she keeps the raffle ticket, she is actually incurring a cost for keeping the ticket. This cost is called the Opportunity Cost. Opportunity Cost is the cost a person bears by choosing one option out of two or many. So in this question, if Lindsay keeps the raffle ticket, she is incurring an Opportunity Cost of $60. She bought the ticket for $5 and now someone is offering her $65. So after deducting her cost of $5, she is losing $60 as an opportunity cost.

Answer 2

The correct answer is $65.00

Opportunity Cost alludes to an advantage that a man could have gotten, yet offered up, to make another decision. This cost is, in this way, most important for two fundamentally unrelated occasions. In contributing, it is the distinction consequently between a picked speculation and one that is essentially left behind.