Answer:
Based on the information provided, the correct statement is:
A. The opportunity cost of an evening at the theatre is £10.
Opportunity cost refers to the value of the next best alternative that you give up when making a decision. In this scenario, the opportunity cost of going to the theatre is the value you assign to the pub experience (£50) minus the value you assign to the theatre experience (£60), which equals -£10.
The economic cost of going to the theatre is the actual monetary cost of the ticket (£50), so option B is incorrect.
The economic rent of going to the theatre is not applicable in this context, so option C is incorrect.
Based on economic rent alone, we cannot determine the preferred choice as it does not take into account the pleasure or value associated with each option, so option D is incorrect.
Therefore, the correct statement is A. The opportunity cost of an evening at the theatre is £10.
Step-by-step explanation: