Khalil is offered a free ticket to the opera,which he cannot resell.His opportunity cost of going to the opera is:
A)zero-the tickets were free.
B)the price listed on the ticket.
C)whatever Khalil would have done had he not gone to the opera.
D)the price listed on the ticket and whatever Khalil would have done had he not gone to the opera.

Question

Quizplus · Accepted Answer

Opportunity cost is the next best alternative forgone when making a decision. In this case, Khalil's next best alternative would be whatever he would have done had he not gone to the opera. Since the ticket was free, there is no monetary cost associated with it, and therefore the opportunity cost is not related to the price listed on the ticket.

Khalil Is Offered a Free Ticket to the Opera,which He