Question

Janine is an accountant who makes $30,000 a year. Robert is a college student who makes$8,000 a year. All other things equal, who is more likely to stand in a long line to get a cheap concert ticket?

(A) Janine; her opportunity cost is lower
(B) Janine; her opportunity cost is higher
(C) Robert; his opportunity cost is lower
(D) Robert; her opportunity cost is higher
(E) Janine; she is better able to afford the cost of the tickets

Answer 1

Robert is more likely to stand in a long line to get a cheap concert ticket because his opportunity cost is lower compared to Janine's higher income and opportunity cost.

Step-by-step explanation:

Regarding the likelihood of standing in a long line to get a cheap concert ticket, we should consider the opportunity cost for Janine, an accountant making $30,000 a year, and Robert, a college student making $8,000 a year. Opportunity cost is the value of the next best alternative foregone as the result of making a decision.

Since Janine makes more money per hour than Robert does, her opportunity cost of standing in line (i.e., the income she foregoes by not working during that time) is higher than Robert's.

Therefore, Robert; his opportunity cost is lower, which means he is more likely to stand in a long queue for concert tickets as the trade-off between time and money is less costly for him.

Answer 2

Janine is an accountant who makes $30,000 a year. Robert is a college student who makes$8,000 a year. All other things equal, who is more likely to stand in a long line to get a cheap concert ticket?

Robert; his opportunity cost is lower

Step-by-step explanation:

Robert has loss of potential gain from the alternative available, his low income will made him to queue in order to get the concert ticket