Lindsay purchased a raffle ticket for $5.Just before the grand prize drawing two people tried to buy her ticket.The first person offered $30,and another offered $65.What is Lindsay's opportunity cost of keeping the raffle ticket?

Question

Quizplus · Accepted Answer

The opportunity cost of keeping the raffle ticket is the value of the next best alternative foregone, which in this case is the $65 offered by the second person, as it is the highest offer she received and gave up by deciding to keep the ticket.

Lindsay Purchased a Raffle Ticket for $5