You go to the movieplex where movies ordinarily cost $9.You are intending to see a movie for which you have a $3 off coupon good for only that movie at that time.However,when you get there you see a friend who asks if you would rather see a new release.Both movies start and end at the same time.If you decide to see the new release with your friend,what is your opportunity cost?

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that you have to forego in order to pursue a certain action. In this case, if you decide to see the new release with your friend, the opportunity cost would be the value you place on seeing the first movie plus the $3 coupon that you can no longer use. Therefore, choice A is the correct answer. The other choices are not accurate because they do not take into account the value you place on the first movie that you decided not to watch.

You Go to the Movieplex Where Movies Ordinarily Cost $9