Figure 6-1
Income = $ 100
Price per Ticket = $20
Price per Compact Disk $ 10

-Joe spends all of his money on concert tickets and compact disks.Figure 6-1 shows his budget constraint when his income is $100.The price of a ticket is $20,while the price of a compact disk is $10.What is the opportunity cost of a compact disk?

Question

Figure 6-1
Income = $ 100
Price per Ticket = $20
Price per Compact Disk $ 10
 
-Joe spends all of his money on concert tickets and compact disks.Figure 6-1 shows his budget constraint when his income is $100.The price of a ticket is $20,while the price of a compact disk is $10.What is the opportunity cost of a compact disk?

Quizplus · Accepted Answer

The opportunity cost of a compact disk is the amount of tickets Joe has to give up to buy one disk. Since a ticket costs $20 and a disk costs $10, Joe gives up 1/2 of a ticket for each disk.

Figure 6-1 Income = $ 100