Question

Ed is taking off from work for five hours this afternoon and going to a baseball game. The ticket to the game costs $20 and it costs $15 to park at the stadium. Ed earns $10 an hour at his job. Ed's opportunity cost of going to the ball game is:

Answer 1

Answer:

The opportunity cost is $50.

Explanation:

The opportunity can be defined as the cost of sacrificing an alternative.  

Here, the cost of a ticket is given as $20.

The parking cost is $15.

Ed earns a wage of $10/hour at his job.

He is taking off for 5 hours.

The opportunity cost of going to the game is

= $\ 10\ \times \ 5$

= $50

The total economic costs will be

= $20 + $15 + $50

= $85