Question

benjamin has saved $40.00 for concert tickets, but decides to buy a new pair of jeans instead. in this scenario, what do the concert tickets most likely represent

Answer 1

Yes the correct answer was

Opportunity cost

Thanks

Answer 2

The concert tickets would most likely represent an opportunity cost. Opportunity cost is the loss of potential gain from one alternative when another alternative is chosen. In this example, instead of buying the concert tickets, he bought a new pair of jeans. The benefit he could have gain from buying the concern ticket was given up in order to acquire the benefits of having a new pair of jeans.