Question

Consider the winter activity of skiing. Assume that the rental cost of ski equipment is $84 and the lift ticket costs $95. If you go skiing, you would wear the ski jacket you purchased last year for $148. If you do not go skiing, you could either work at your part-time job, which would earn you $180, or study at the library, which you value at $34.Suppose that you were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the opportunity cost of going skiing?Enter a whole number and no dollar sign.

Answer 1

Answer: $359

Step-by-step explanation:

Opportunity cost refers to the next best benefit that would have been accrued to you if you did not make the decision or embark on a project that you did. In this case therefore that would be the amount you would have earned working which is $180.

It can be measured as an Economic cost which is both the implicit cost and the explicit cost (opportunity cost).

= 84 + 95 + 180

= $359