Carl is considering attending a concert with a ticket price of $35.He estimates that the cost of driving to the concert and parking there will total an additional $20.In order to attend the concert,Carl will have to take time off from his part-time job or forgo studying for an exam scheduled for the next morning.He estimates that he will lose 5 hours at work,at a wage of $6 per hour,or 5 hours of study time.If Carl considers studying the best alternative use of his time,his opportunity cost of attending the concert equals
A) $55
B) $55 plus the value of the higher exam grade he could earn by studying for 5 hours
C) $85 plus the value of the higher exam grade he could earn by studying for 5 hours
D) $85 minus the value of the higher exam grade he could earn by studying for 5 hours
E) $55 minus the value of the higher exam grade he could earn by studying for 5 hours

Question

Quizplus · Accepted Answer

The opportunity cost includes the $55 spent on the ticket and travel, plus the value of the higher exam grade he could earn by studying for 5 hours, which is the best alternative use of his time.

Carl Is Considering Attending a Concert with a Ticket Price