Question

Ed is taking off from work for five hours this afternoon and going to a baseball game. The ticket to the game costs $20 and it costs $15 to park at the stadium. Ed earns $10 an hour at his job. Ed's opportunity cost of going to the ball game is:____________

Answer 1

Answer:

opportunity cost =  $85

Explanation:

given data

game ticket costs =  $20

parking cost = $15

Ed earns = $10 an hour

time = 5 hour

solution

first we get here opportunity cost for 5 hour on game that is

so Ed earns for 5 hour is = $10 × 5 = $50

so here opportunity cost will be

opportunity cost = Ed earns + parking cost + game ticket costs   ............1

put here value and we get  

opportunity cost = $50 + $15 + $20

opportunity cost =  $85