You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. (Assume that you would not have been willing to pay any more than $35 for this concert.) Your boss called and she is looking for someone to cover a shift on Saturday at the same time as the concert. You will have to work 4 hours and she will pay you time and a half, which is $9/hr. What is your opportunity cost, if you go to work on Saturday?

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative foregone, which in this case is going to the concert. Since you paid $35 for the ticket, and you would not be willing to pay any more than that, the opportunity cost of working instead of attending the concert is $35. Therefore, the best choice is C.

You Paid $35 for a Ticket (Which Is Non-Refundable) to See