A new startup airline is offering a free round-trip ticket to Hawaii to the first 600 people who enter the airline's main office on the airline's first day of business.You arrive 24 hours before it is scheduled to open to be sure to get the free ticket,and you buy food from vendors while waiting in line.You successfully obtain the ticket.What would be the cost to you for obtaining the ticket?
A) zero
B) the cost of food while you wait in line
C) the cost of food while you wait in line and the opportunity cost of your time spent in line
D) the actual value of the ticket

Question

Quizplus · Accepted Answer

While the ticket itself is free, there is an opportunity cost associated with waiting in line for 24 hours. This means that you are giving up the opportunity to do something else with your time that could have potentially earned you money or provided other benefits. Additionally, you had to purchase food from vendors while waiting in line, which is an out-of-pocket cost. Therefore, the total cost of obtaining the ticket would be the cost of food while waiting in line, as well as the opportunity cost of your time spent in line.

A New Startup Airline Is Offering a Free Round-Trip Ticket