Lindsay purchased a raffle ticket for $27. Just before the grand prize drawing two people tried to buy her ticket. The first person offered $120, and another offered $155. What is Lindsay's opportunity cost of keeping the raffle ticket?

Question

Quizplus · Accepted Answer

Lindsay's opportunity cost is the value of the next best alternative that she gave up by keeping the raffle ticket. The highest offer she received was $155, so her opportunity cost of keeping the ticket is $155.

Lindsay Purchased a Raffle Ticket for $27