You go to the movieplex where movies ordinarily cost $10.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 foregone. In this case, it's the value you place on the first movie plus the $3 discount you would have received.

You Go to the Movieplex Where Movies Ordinarily Cost $10