Gregory is considering attending a concert with a ticket price of $40.He estimates that the cost of driving to the concert and parking there will add an additional $20.In order to attend the concert,Gregory will have to take time off from his part-time job.He estimates that he will lose 5 hours at work,at a wage of $8 per hour.Gregory's opportunity cost of attending the concert equals
A) $80.
B) $100.
C) $40.
D) $60.
E) $20.

Question

Quizplus · Accepted Answer

The opportunity cost of attending the concert includes the cost of the ticket ($40), the cost of driving and parking ($20), and the wages that Gregory will lose by taking time off work (5 hours x $8 per hour = $40). Therefore, the total opportunity cost is $100 (=$40+$20+$40).

Gregory Is Considering Attending a Concert with a Ticket Price