Katarina receives two free passes to the waterpark for her birthday. She's not a huge fan of waterparks and would never buy such tickets for their face value of $90. A friend offers to buy the tickets from her at face value, but Katarina decides to use the tickets instead. Which of the following statements is true?
I. Katarina should have ignored the $90 sunk cost and sold the tickets.
II. The opportunity cost of keeping and using the tickets is $90.
III. In keeping the tickets, Kate ignored her implicit cost of owning the tickets.

Question

Quizplus · Accepted Answer

The opportunity cost of using the tickets is the $90 she could have received from selling them. By keeping the tickets, she incurs an implicit cost, which is the foregone benefit of selling them for $90.

Katarina Receives Two Free Passes to the Waterpark for Her