You have two choices for how you are going to spend Saturday evening. You can go to the pub with your friends, which will cost you £30 for the evening. The pleasure you anticipate from this experience is worth £50 to you. Or you can go to the theatre. The ticket will cost you £50, but you value the experience at £60. Based on this information, read the following statements and select the correct one(s).

Question

BlackTom AI · Accepted Answer

Opportunity cost of an action is the value of the best alternative you give up. The theatre is the next-best alternative to the pub and you value that theatre experience at £60 — therefore the opportunity cost of an evening at the pub is £60.

Relevant concepts:
- Explicit (monetary) cost: the money you actually pay (pub £30; theatre £50).
- Benefit (value): the subjective value/pleasure you expect (pub £50; theatre £60).
- Consumer surplus (economic rent in this context): benefit minus price (net gain from the choice).
- Opportunity cost: value of the next-best alternative forgone (not the net gain, but the value of that forgone option).

Step-by-step calculations:
1. Consumer surplus (net benefit) for pub = value − price = £50 − £30 = £20.
2. Consumer surplus (net benefit) for theatre = £60 − £50 = £10.
3. Opportunity cost of choosing pub = value of the next-best alternative (theatre) = £60.

Why the correct answer is correct:
- Opportunity cost is defined as the benefit you forgo by not choosing the next-best option. Since the theatre’s benefit is £60, that is exactly the opportunity cost of attending the pub.

Why the other options are incorrect:
- "The economic cost of going to the pub is £40." This is incorrect. If someone tried to compute £40, they may have added the explicit cost (£30) to the forgone net benefit (£10), but that mixes measures and misapplies definitions. Economic cost (in the sense of opportunity cost) should be the value of the best alternative (£60), not £40. If you meant explicit monetary cost alone, that is £30, not £40.
- "The economic rent of going to the pub is £0." False. Economic rent/consumer surplus for the pub is £20 (50 − 30 = £20), so it is not zero.
- "Based on economic rent alone, you would definitely choose to go to the theatre." False. Comparing consumer surplus: pub gives £20, theatre gives £10, so based on economic rent alone you would prefer the pub.

Conclusion: The opportunity cost of an evening at the pub is £60, which matches the provided correct answer.

类似问题

Suppose a student decides to spend two hours working at a part-time job instead of studying for an exam. She earns $40 from the job but scores 10 points lower on the exam than she otherwise would have. What is the opportunity cost of her decision?

The Blank ______ cost of any resource used to produce a good is the value or worth the resource would have in its best alternative use.

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).

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