Ian paid $475 for an airline ticket to fly to Acapulco,Mexico for a spring break vacation.Unfortunately,he fell ill and could not go to Acapulco.When he called the airline to cancel the ticket,he was reminded that the ticket was non-refundable,but that he could exchange it for another ticket within one year if he pays a $75 fee at the time of the exchange.Several months later he is deciding whether to exchange the ticket for a ticket of the same price to Acapulco.The opportunity cost of going to Acapulco would equal
A) the ticket price of $475 plus the $75 exchange fee,if he has no other trip that he will take within the year.
B) the ticket price of $475 plus the $75 exchange fee,if he has another trip that he will take within the year.
C) the $75 exchange fee,if he has no other trip that he will take within the year.
D) the $75 exchange fee,if he has another trip that he will take within the year.
E) $0,if he has no other trip that he will take within the year.
Correct Answer:
Verified
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