Question

The Atlanta Symphony wants to make sure that its concerts are affordable for all residents of Atlanta and therefore prices all its tickets at $25 each. However, outside Symphony Hall, people can sell the same tickets for $75 or more. The true cost to the concertgoer of a ticket to the symphony is at least:

Answer 1

Answer:

$75

Explanation:

The true cost of going to a concert is $75 because that is its economic cost. Economic costs include accounting costs and opportunity costs. In this case, if you are able to purchase a $25 ticket, you can resell it for $75 (opportunity cost = $50), you the true cost is the resale price.