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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?
- 9 years agoFavorite 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.