Question

You want to go the Six Flags amusement park. The ticket price to enter and enjoy the rides in Six Flags is $65. You live in Richardson and you need to take an Uber to go there which will cost you $40. Approximately, you will spend 6 hours in the park. Instead of going to the park, you could have driven as an Uber driver and for 4 hours (out of the 6) and earned $12 per hour. If you decided not to drive the Uber, you could have also played an online competition during this time and earned $25.
Required:
a. What is the Opportunity Cost of going to Six Flags?
b. What is the total cost of choosing to go the Six Flags?

Answer 1

Answer:

Results are below.

Explanation:

The opportunity cost is the amount of money that you won't earn when choosing one option over another. In this case, one option makes you expend money and the other earn money.

Opportunity cost= 12*4 + 25

Opportunity cost= $73

Now, the total cost incorporated what you will expend in Six Flags:

Total cost= 65 + 40 + 73

Total cost= $178