- Dec 14, 2005
- 2,256
Hypothetical situation:
Question:You won a free ticket to see an Eric Clapton concert (which has no resale value). Bob Dylan is performing on the same night and is your next-best alternative activity. Tickets to see Dylan cost $40. On any given day, you would be willing to pay up to $50 to see Dylan. Assume there are no other costs of seeing either performer.
Based on this information, what is the opportunity cost of seeing Eric Clapton?
(a) $0,
(b) $10,
(c) $40, or
(d) $50.