Question

Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. What is the opportunity cost of Tammie’s trip to the concert? Show your calculations

Answer 1

@ganeshie8 Can you please explain to me how to do this?

Answer 2

Would it be $150*2=$300 for the money she missed from work + $250 for transportation +$50 for the concert ticket. Making her opportunity cost $600?

Answer 3

@johnweldon1993

Answer 4

yes it would cost $600

Answer 5

Opportunity cost is "lost money". In this case, she lost the pay for two days and also the amount of money spent on the trip.

Answer 6

Answer is not 250$ + 50$ = 300$

Opportunity cost is 150$ x 2 Days = 300$

If she had worked for those 2 days she would have earned 150 x 2 = 300$. That was an opportunity to earn 300$ but she spoiled it. That is why it is known as opportunity cost.

Opportunity Cost:-
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It refers to the value of sacrifice made or benefit of opportunity forgone in accepting an alternative course of action.


In the above case alternative course of action is "attending the concert"... And the sacrifice made is two days pay.

Answer 7

@vshiroky