Calculate your opportunity cost of going to a movie premi`ere at the theatre wit

ID: 1214331 • Letter: C

Question

Calculate your opportunity cost of going to a movie premi`ere at the theatre with your friend Spencer on Saturday night in the following scenarios:

(a) Your neighbor is offering you $100 to baby-sit her 4-year old, and you would have to pay $10 for the movie ticket.

(b) Your neighbor is offering you $100 to baby-sit her 4-year old, and Spencer is paying for your ticket.

(d) You have already bought your $10 movie ticket, and you can resell it for $8 dollars.

(e) You have already bought your $10 movie ticket, but the showing is sold out and tickets are now selling for $30 on the black market.

a. The opportunity cost is $100 in this case as you will get $100 for babysitting and $10 will not be spent.

b. The opportunity cost is $90 in this case as you will get $100 for babysitting and $10 will be paid by spensor. Net money you get is $90.

c. Opportunity cost is zero,

cd. Opportunity cost is loss of $2.

e. $20.

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