You've received a free promotional ticket to Eric Clapton concert which has no resale value. On the same night and at the same time, however, there is also a Bob Dylan concert. Bob Dylan is the only artist you'd ever consider going to listen to that night (apart from Eric Clapton, that is). On a normal day, you'd be willing to pay £50 for his ticket. The price of the Bob Dylan ticket for that night is actually £40.
Taken all of these information together, what is the opportunity cost - i.e. the cost of giving up the opportunity of doing one thing or consuming one thing and not the other - of going to see Eric Clapton concert? Is it:
A) £10
B) £40
C) £50
D) Zero.
Give yourself 5 minutes to think about this and post your answers in the comment below. No cheating now!
I'll reveal the answer in my next post...
1 comment:
There are several questions I have to know before I answer. For example,
1. Can I make money while the concert performs?
2. Will the upcoming Bob Dylan’s concern be his last concert?
3. Do I need to pay other expenses to go to each concert? And how much?
Anyway, without additional information, I prefer choice d).
I am also waiting for your answer!
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