Question

ECONOMICS: Opportunity Costs: Suppose on Friday night you have a choice to go either to a Katy Perry concert or a Lady Gaga concert. You won a free ticket to see Katy Perry. You would pay as much as $200 to see Lady Gaga perform, but tickets to her show cost $100 . Assume that you end up going to the Katy Perry concert.

Since you went to the Katy Perry concert, you must be willing to pay at least $_____ to see Katy Perry.

Answer 1

This suggests merely, basically must be willing to pay at scarcest $100 to see another show up, in case you select to allow up Lady Gaga show.

Answer 2

Since you went to Katy Perry concert, you must be willing to pay at least $100 to see Katy Perry.
You desire to go to Lady Gaga concert and you are ready to pay as much as $200 to see her show, even though the entry ticket fee is $100. This implies that, you must be willing to pay at least $100 to see another show, if you decide to give up Lady Gaga show.