Question

Jack has a ticket to see Bo Bice for which he paid $30 yesterday. He takes an unpaid day off from work to get ready for the concert. When he arrives at the concert, five different people offer him $70 for his ticket. Jack decides to keep his ticket. At the time he makes this decision, his opportunity cost of seeing Bo Bice is:

Answer 1

Answer:

$70

Explanation:

The opportunity cost is the value in which the advantage is produced from the options available. The best gain is term as the opportunity cost

In the question, it is given that the offered price is $70 and the yesterday price is $30 which was paid which terms as a sunk cost. This cost is not useful for decision making as well as for computing the opportunity cost also

So, only $70 would be considered