Question

Max has two options this weekend. He could work at his job and earn $7 per hour for three hours, or he could go to an exhibit at the art museum for that three hours. A ticket for the event costs $30.What is the opportunity cost of the event? $

Answer 1

Answer:

The opportunity cost of the event $21.

Explanation:

Opportunity cost is the loss of alternative when someone chooses an alternative.

Number of Hours = 3 hours

Earning per hour = $7

Total opportunity cost = $7 x 3

Total opportunity cost = $21

As Max has to bear the loss of $21 earning when he goes to the event in the museum. So this is his opportunity cost.