Question

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John?

a. attending a movie, studying for an economics exam, and answering his e-mail
b. going to the concert because that is what John choose to do
c. answering his e-mail
d. attending a movie
e. studying for an economics exam

Answer 1

d. attending a movie

Step-by-step explanation:

The opportunity cost of going to a concert is attending a movie because he will utilize all his time in the concert and will have no time left for movie. Also this was the second option in his list.

The opportunity cost of going to concert is the enjoyment time of the movie. If he did not go to a concert he would have watched the movie.

The opportunity cost is the value of one alternative chosen over the other. It may be the value of time, money etc.