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You have been invited to play a 2-hour round of golf that has a value to you of $85.

The total price of play the round of golf is $31.

The value of your time, if you were doing something other than play golf, is $19/hour.

The net benefit of the round of golf is:

User Tim Iles
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To calculate the net benefit of playing the round of golf, we need to determine the cost of playing the round of golf and the value of the benefits we receive from playing it.

Cost of playing the round of golf: $31

Value of playing the round of golf: $85

Opportunity cost (value of time if not playing golf): $19/hour

Time to play the round of golf: 2 hours

Therefore, the opportunity cost of playing golf is:

Opportunity cost = Value of time × Time spent

Opportunity cost = $19/hour × 2 hours

Opportunity cost = $38

The net benefit of playing golf is the value of the benefits minus the cost and the opportunity cost:

Net benefit = Value of benefits - Cost - Opportunity cost

Net benefit = $85 - $31 - $38

Net benefit = $16

Therefore, the net benefit of playing the round of golf is $16.

User Mmmmmmmm
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