Sal has many options for how to spend her afternoon. She placed them in the order in which she values them: 1) go to a movie, 2) go to the library 3) attend a baseball game, and 4) clean her apartment. Which is her opportunity cost of going to a movie?

Question

Engineering

Baird

29 January, 00:33

Sal has many options for how to spend her afternoon. She placed them in the order in which she values them: 1) go to a movie, 2) go to the library 3) attend a baseball game, and 4) clean her apartment. Which is her opportunity cost of going to a movie?

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Answers (1)

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Justice · Answer 1

Sal's opportunity cost of going to a movie is all the other options except the first one.

Explanation:

Opportunity cost is nothing but the loss you bear for not choosing any item over the one which you choose. If you choose to buy an ice cream over juice. Then your opportunity cost will be the juice. Because you left juice and preferred ice cream instead. Similarly with the above explanation considering the above situation Sal left all the other activities that she could do over a movie. It means she lost all the option she could have done. That is she lost the opportunity of going to library, Attending the baseball game and also cleaning her apartment. So these are her opportunity cost for preferring movie