Ask Question
BusinessBusiness
16 January, 06:29

Suppose, as your birthday gift, your best friend give you a 4-day general admission ticket for Bonnaroo 2018 with a market value of $554.50. What is your opportunity cost of going to Bonnaroo this year using the free ticket?

+3
Answers (1)
  1. 16 January, 07:28
    0
    Cost of 4 days time: In terms of earnings sacrifised from those working days, or any qualitative value of that time.

    Explanation:

    Opportunity Cost is the cost of next best alternative sacrifised while choosing an alternative.

    It might be material, immaterial.

    Eg1: Working at Job1 with salary 10000, having other job option with salary 8000. Opportunity cost of Job1 is Job2 salary. Eg2: Me preferring Chapati over rice, opportunity cost of consuming Chapati is rice' satisfaction.

    Eg 1 has material (monetary) opportunity cost i. e salary. Eg 2 has immaterial opportunity cost i. e satisfaction.

    Admission ticket for Bonnarro would have had opportunity cost = its price i. e $554.50 as the amount sacrifised to get that. However: as given the ticket is gifted free; the opportunity cost of that is 4 days time sacrifised to attend it. The value of that sacrifised time may be in form of : - earnings lost from those 4 working days sacrifised (material); or 4 days time to be spent with family sacrifised (immaterial).
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose, as your birthday gift, your best friend give you a 4-day general admission ticket for Bonnaroo 2018 with a market value of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
When a natural monopoly exists in a given industry, the per-unit costs of production will be?
Answers (1)
A machine with a cost of $144,000, current year depreciation expense of $20,500 and accumulated depreciation of $92,000 is sold for $45,600 cash.
Answers (1)
Sauder Corporation reports the following information: Net income $380,000 Depreciation expense 70,000 Increase in accounts receivable 30,000 Sauder should report cash provided by operating activities of A. $340,000. B. $280,000. C. $420,000. D.
Answers (2)
If your tuition is $2,000 this semester, your books cost $400, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $12 per hour, and your room and board is $4,000 this semester (same as if not
Answers (1)
Max has set a goal to create an emergency fund. he determined that his monthly expenses total $1,525. based on recommendations, how much should max save for his emergency fund?
Answers (1)
New Questions in Business
Societe Generale, France's second largest banking establishment, had long had a reputation for having poor internal controls.
Answers (2)
Jasper makes a $25,000, 90-day, 7% cash loan to clayborn co. the amount of interest that jasper will collect on the loan is:
Answers (1)
If the price and quantity for an inferior good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant?
Answers (1)
Assume the top six firms comprising an industry have market shares of 10, 8, 8, 5, 5, and 4 percent. The remaining 20 firms each have market shares of 2 percent. The Herfindahl index for this industry is
Answers (1)
Andre, the floor manager of a packing plant, is under pressure from his boss to increase productivity. He circulates a memo telling all of his workers that they need to increase the number of units packed each hour.
Answers (1)
Home » Business » Suppose, as your birthday gift, your best friend give you a 4-day general admission ticket for Bonnaroo 2018 with a market value of $554.50. What is your opportunity cost of going to Bonnaroo this year using the free ticket?
Sign Up Forgot Password?