Question

College football​ attendance, especially student​ attendance, has been on the decline. In​ 2016, home attendance at major college football games declined for the sixth consecutive year and was the lowest since 2000. The opportunity cost of engaging in an activity is the value of the best alternative that must be given up to engage in that activity. ​Source: Jon​ Solomon, "College Football Attendance in​ 2016: Crowds Decline for Sixth Straight​ Year," cbssports, December​ 16, 2016. Your opportunity cost of attending a game compared with the opportunity cost facing a college student 10 years ago is:________ A. ​higher, because more games are televised today. B. ​higher, because the cost of cable TV is higher today. C. ​lower, because of social media. D. ​lower, because games are usually viewed on​ high-definition television today. Can this change in opportunity cost account for the decline in college football​ attendance? Briefly explain. A. ​No, because the price of the game ticket is the only thing that matters. B. ​Yes, because these changes increase the opportunity cost of watching football games in person. C. ​Yes, because sports fans are rarely rational. D. ​No, because opportunity costs do not involve an actual payment of money. g

Answer 1

Answer:

Your opportunity cost of attending a game compared with the opportunity cost facing a college student 10 years ago is:

A) higher, because more games are televised today.

Opportunity costs are the cost of choosing one alternative from another.

In this case, when college students attend college football games they are unable to do other activities, not only while they are at the stadium or going to the stadium, but they are not able to purchase other goods. The cost of those alternatives that are lost are higher now because many college football games are televised now, before if you wanted to see a game you had to go to the game. So a student is now able to watch the game while doing other activities, or saving money for buying something else.

Can this change in opportunity cost account for the decline in college football​ attendance?

B) ​Yes, because these changes increase the opportunity cost of watching football games in person.

Even though opportunity costs do not involve actual cash payments, they are still important and individuals do consider them when they are choose one option over another. E.g. imagine if you had to choose between spending a considerable amount of money by attending a game (ticket, gas, beverages, etc.) or watching that game on TV and buying a few clothes instead or going on a date, etc. What option would you choose?