Question

Max bought a ticket to the championship baseball game for $170. Someone approaches him outside the stadium and offers him $365 for his ticket. If Max decides to go to the game, instead of selling his ticket, how much does it cost Max to go to the game?
a. $365

b. $195

c. $170

d. None of the above.

Answer 1

Answer:

The answer in this instance, would be option a. or $365.

Explanation:

• In this case, the original price of the baseball game ticket is $170 as paid by Max to buy the ticket and someone offered $365 to sell his ticket to that person.
• Note that Max is basically giving up or sacrificing the opportunity of earning $365 as he decides to attend the game and not sell his ticket.
• Therefore,in this case, the opportunity cost of attending the game by personally purchasing the ticket to Max would be $365 as he is foregoing the opportunity to earn additional $365 by refusing to sell his ticket and go to the game instead.