Question

It’s Friday night. You already have a ticket to a concert, which cost you $30. A friend invites you to go out for a game of paintball instead. Admission would cost you $25, and you think you’d get $25 worth of enjoyment out of it. Your concert ticket is nonrefundable.What is your opportunity cost(in dollar) of playing paintball?

Answer 1

The opportunity cost of playing paintball instead of attending a concert for which the student already has a $30 nonrefundable ticket is at least $30, because the enjoyment and value of the concert is the next best alternative foregone.

Step-by-step explanation:

The student asks about the opportunity cost of playing paintball when they already have a nonrefundable concert ticket. Opportunity cost represents the value of the next best alternative given up when a decision is made. Here, considering the concert ticket's cost is sunk since it cannot be reclaimed, the opportunity cost of playing paintball is the enjoyment and value that would've been gained from attending the concert. Since the question doesn't specify the value the student places on the concert, it would typically be assumed that the student values the concert at least at the price of the ticket, which is $30. Thus, the opportunity cost in dollars would then be at least $30.

Answer 2

$30

Step-by-step explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Here, one has the option of either paintballing or attending a concert. If one goes paintballing , the opportunity to attend the concert is forgone. Thus, the opportunity cost is the cost of the concert tickets- $30.

I hope my answer helps you