Question

Amy is thinking about going to the movies tonight. A movie ticket costs $15, and she'll have to cancel a $20 dog-sitting job that she would have been willing to do for free. The opportunity to Amy cost of going to the movies is:

Answer 1

Answer:

$35

Explanation:

Opportunity cost: It is a cost incurred when we choose the alternate option available and sacrifice the opportunity of other option. Example: A farmer have 5 Hectar of land, on which he do farming of corn on 3 hectar and rice on 2 hectar, however, due to higher price of rice in market in any particular year, farmer decide to cultivate rice on 3 hectar of land and corn on 2 hectar of land, therefore farmer is loosing opportunity cost of corn while choosing to cultivate more rice.

In the given case, Amy is willing to go for movie, which will cost her $15, also she is sacrificing her dog sitting job, which could earn her $20.

∴ Total opportunity to cost involved in going for movie= $\ 15+\ 20= \ 35$

Hence, The opportunity to Amy cost of going to the movies is $35.