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Question:Eva plans to watch a two-hour concert.alternatively,she can tutor a student at $80 per hour,or she can knit hand straps to earn $200.suppose the concert ticket costs $300,what is the opportunity cost of Eva going to the concert?


Best Answer - Chosen by Asker: Eva plans to watch a two-hour concert.alternatively,she can tutor a student at $80 per hour,or she can knit hand straps to earn $200.suppose the concert ticket costs $300,what is the opportunity cost of Eva going to the concert?

You don't have any idea what "opportunity cost" is, do you? It's the value of some income potential that you will miss by choosing some other opportunity, or if you have two alternative income potential opportunities, it is the highest value of those opportunities. In this case, the "OC" is $200. Note that though we call it a cost, it's not what people think of as a cost. But if you are evaluating several earning opportunities, you want to evaluate not just the biggest value, but also assign some sort of value for the other opportunities you are giving up, including the "second best" opportunity.

heck its so late at night the brain wont work heres my credit card number my treat.....

80%

The opportunity cost would be $200..

That is: the most money she could make if she didn't go..

The cost of entry to the Concert is not factored in, because that money would be included in the ACTUAL cost of the event itself