Question

You and some friends are meeting with city council members to ask them to build a skateboarding park that would cost $30,000. They ask you to identify the opportunity costs of other recreation alternatives for teenagers. As a team, identify two other alternatives for the city and discuss how you would determine the opportunity cost of each.

Answer 1

- Example 1: A basketball court

- Example 2: A swimming pool

2. Determine the opportunity cost of each alternative:

- To determine the opportunity cost of building a basketball court, you would need to consider the benefits and drawbacks of choosing the skateboarding park instead. For instance, you could consider the number of teenagers who enjoy skateboarding versus those who prefer basketball, the potential health and fitness benefits of each activity, and the availability of existing basketball courts in the area.

- To determine the opportunity cost of building a swimming pool, you would need to compare it to the benefits of the skateboarding park. Factors to consider could include the popularity of swimming among teenagers, the availability of other swimming facilities nearby, the cost of building and maintaining a pool compared to a skateboarding park, and the potential for revenue generation through events or memberships at the swimming pool.

Step-by-step explanation: