Suppose that you purchase a nonrefundable $15 movie ticket for tonight at 7:30 pm. After purchasing, you get a call from a friend inviting you to a concert tonight that they just won free tickets for. You have the concert ticket valued at $100. What is your opportunity cost of seeing the movie in dollars?
Added by Shannon G.
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Opportunity cost is the value of the next best alternative that you give up when you make a choice. It's not just about the monetary value, but also the benefits, enjoyment, or utility you would receive from the alternative. Show more…
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