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 the opportunity cost of going to the concert?

Question

Quizplus · Accepted Answer

The opportunity cost of going to the concert is the value of the next best alternative that is given up, which in this case is the income that could be earned by working the shift. The income earned from working the 4-hour shift at time and a half is calculated as:
($9/hr x 1.5) x 4 hours = $54
Therefore, the opportunity cost of going to the concert is $54 (income from working) minus $35 (cost of the ticket), which equals $19. So the best choice is D, which represents the opportunity cost of going to the concert.

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