Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Opportunity cost in Economics

You are given a ticket to a Bob Dylan concert. The face value of the ticket is $50. You value attending the Bob Dylan concert at $40. You can sell the ticket to a friend for $10 and attend a U2 concert by getting a ticket priced at $60. What is

the opportunity cost of attending the U2 concert?

1 Answer

  • 9 years ago
    Favorite Answer

    First you give up the ticket of Dylan, it can be sold to your fd for money, so you earn $10 and give up a valuable choice which give you a value at $40.

    so$30 would be your cost of attending U2 concert.

    BTW, you have to pay for the ticket fee of U2 concert, it costs $60 that means you sacrific $60 for the ticket($60 would bring you a value equal to $60 in other way at the margin)

    It means when you attending the U2 concert, your cost would be$90(monetary cost and substitutional cost)

    Your value gained from the U2 concert somehow would be equal to $90 at the margin, if considered other choices were counted on.

Still have questions? Get your answers by asking now.