you have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the math department. From experience, you know that going to see a movie gives you $20 worth of enjoyment
Added by Dana T.
Step 1
Step 1: Evaluate the enjoyment value of going to see a movie with your roommate, which is $20. Show more…
Show all steps
Your feedback will help us improve your experience
Andrew Davis and 82 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
You recently got a job as an usher at the nearby movie theater. Last night, you had the opportunity to work but decided to take your very first vacation day. Suppose you could have earned $11 per hour for three hours of work. Instead, you went to a movie yourself, where you spent $13 on a ticket and popcorn. Your opportunity cost to see the movie was $
Andrew D.
Two action movies are playing at your movie-theater complex. You have a half-price coupon for one. However, you choose to see the other. How might this still be an example of economizing?
The Economic Way of Thinking
Economic Choice Today: Opportunity Cost
Suppose you are considering going to the movies and You place a S12 value on your anticipated enjoyment ofthe movie The ticket price is S6 and you would be giving Up two hours of work where You earn S5 per hour You would go to work; the opportunity cost of the movies exceeds the expected benefit the movies; your incentive is the $6 excess expected benefit: the movies; vour enjoyment will exceed the lost wages by $2. the movies; the benefit of $18 exceeds the lost wages
Azat N.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD
