You are a taxi driver in Melbourne who earns A$60 for a day’s work. You have been offered a one-day ticket to the Australian Open for A$20. As a tennis fan, you value the experience at A$150. With this information, read the following statements and select the correct one(s).

Question

BlackTom AI · Accepted Answer

1) Relevant knowledge points and concepts
- Opportunity cost: the value of the next-best alternative forgone (here the taxi driver’s forgone daily earning of A$60).
- Explicit cost: out-of-pocket payment (the ticket price A$20).
- Economic (total) cost: explicit cost + implicit (opportunity) cost.
- Willingness to pay / reservation price: the maximum price that leaves the person indifferent between alternatives.
- Distinction between consumer surplus/net benefit and ambiguous uses of the term “economic rent.”

2) Step-by-step reasoning
- If the driver works that day he earns A$60 (this is the next-best alternative).
- If he goes to the Open he must buy the A$20 ticket (explicit cost) and forgo the A$60 earning (implicit cost).
- Economic (total) cost of attending = explicit cost + opportunity cost = A$20 + A$60.

3) Calculations (all intermediate steps)
- Opportunity cost = A$60.
- Explicit cost = A$20.
- Economic cost = 60 + 20 = A$80.
- To find maximum ticket price p he would pay: compare utility of attending versus working.
  Utility of attending (money-equivalent) = value of experience − ticket price = 150 − p.
  Utility of working = 60.
  Indifference when 150 − p = 60 → p = 150 − 60 = A$90.
  So he would pay up to A$90.

4) Why the correct answers are correct
- “The economic cost of the day at the Open is A$80.” This follows directly from economic cost = explicit (20) + implicit forgone wage (60) = 80.
- “You would have paid up to A$90 for the ticket.” Solving 150 − p = 60 gives p = 90, the highest price at which attending yields at least as much utility as working.

5) Why the other options are incorrect
- “The opportunity cost of the day at the Open is A$20.” Incorrect: A$20 is the explicit ticket price; the opportunity cost is the forgone A$60 wage.
- “The economic rent of the day at the Open is A$70.” This phrase is ambiguous. The net gain from attending relative to working is 150 − 20 − 60 = A$70 (net benefit), but “economic rent” is not the standard label for that figure here. If by “economic rent” one meant consumer surplus relative to the ticket price it would be 150 − 20 = A$130. Because the statement as given is ambiguous and not the definition used in the question, it is not a correct selection.

6) Conclusion / confirmation
- The correct selections are: “The economic cost of the day at the Open is A$80.” and “You would have paid up to A$90 for the ticket.” These match the provided answers.

You are a taxi driver in Melbourne who earns A$60 for a day’s work. You have been offered a one-day ticket to the Australian Open for A$20. As a tennis fan, you value the experience at A$150. With this information, read the following statements and select the correct one(s).多项选择题

类似问题

The opportunity cost of producing capital goods today is:

11. XYZ Corp spent $1500 on a new computer. The opportunity cost of the computer was: A. $0, because it is a sunk cost B. $0, because it is an explicit cost C. $1500, the amount spent on the computer D. $1500 minus the amount XYZ could get reselling it

You are a taxi driver in Melbourne who earns A$60 for a day’s work. You have been offered a one-day ticket to the Australian Open for A$20. As a tennis fan, you value the experience at A$150. With this information, read the following statements and select the correct one(s).

You are a taxi driver in Melbourne who earns A$50 for a day’s work. You have been offered a one-day ticket to the Australian Open for A$40. As a tennis fan, you value the experience at A$100. With this information, read the following statements and select the correct one(s).

You are a taxi driver in Melbourne who earns A$70 for a day’s work. You have been offered a one-day ticket to the Australian Open for A$50. As a tennis fan, you value the experience at A$100. With this information, read the following statements and select the correct one(s).

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单