Question

Ben has two options this weekend. He could work at his job and earn $10 per hour for three hours, or he could go to a concert for that three hours. A ticket for the event costs $30. What is the opportunity cost of the event? $

Answer 1

Answer:

The correct answer is: $60.

Explanation:

Opportunity Cost is what a person sacrifices when they choose one option over another. It is also defined as the revenue of the chosen option over the revenue of the option that was forgone. It represents what was left on the table for deciding taking one option over another.

In Ben's case, the opportunity cost of going to the event represents what he could have earned working for three hours ($10 x 3 = $30). However, as he will have to pay for the event, he will lose $30 for the event ticket. Then, the total opportunity cost of going to the event is:

$30 + $30 = $60