Your opportunity cost of going to a movie isc. The full cash expenditure necessary to walk to the movie plus the worth ofyour time.




You are watching: What is the opportunity cost of seeing a movie

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Video Transcript

okay. And also this question, Andi request us about the opportunity price of going to a movie. Remember, recall the definition of an opportunity caused It's the full value of her next best options. It's the full cost that what you can have done if that didn't walk to a movie, right. If friend look in ~ letter A talks around the price the a ticket, that's the many straightforward costing going to movie prepared yet to pay the price the a ticket to acquire in. However this is various than possibility caused. One opportunity causes action more than just a straightforward the airplane causing going come a movie. It consists of the different White home he could have done with your time if that didn't walk to a movie, right? In enhancement to conserving money from the ticket, what else can you have done in that time? rather of going come movie so us can remove letter a letter B talks about the price that the ticket, to add the cost of any type of soda and popcorn girlfriend buy on. This is similar to a letter. A right. This is talking around basically the straightforward cause that you encounter when you go to a movie and also buy snacks. You pay the price for whatever those things cost. But again, the opportunity cost us more than that. It additionally includes the alternative things that you might have to be doing in the time. You're city hall a movie and buying top top the soda. Permit her watch the total cash expenditure essential to walk to the movie, to add the worth of your time. Let's one this. This sounds choose our ideal answer for this reason far since it it has all the street for expenses you encounter, right? The price that a ticket, The price of girlfriend know, the soda and also popcorn. All those cash expenditure would have been conserved if he didn't walk to the movie right in the next best option. If you didn't go to possibly let's to speak you checked out the library. Speak going come the library was her next best option, right? friend wouldn't need to pay the price of the ticket. Friend won't have to pay for any pocket. That sorta so every the money friend would have actually spent is something that's included in the chance cost. In enhancement to the moment that you invest at the movie, right, instead of going come the movie. You can have remained in the library studying, girlfriend know, researching Burnett workdesk next economics test. Thie opportunity. Cost includes the casual spending, Cher's and the worth of that time. What you could have been doing instead of going come the movies. So that sounds choose the finest option. We'll examine D simply in situation two years zero as lengthy as you reap the movie and consider that a were fall use that time and money. Although the sounds like a an excellent answer, this is no true, due to the fact that for every activity that girlfriend do, they're constantly being opportunity reason you'll never have actually an opportunity. Price of zero right? Let's to speak you walk to the library, enter the libraries because that you. Don't salary anything, however but there's tho on chance cost, right. Rather of going come the library, you could have been at home. Um, it could have to be a residence sleeping right. The value of sleep and resting at house is something the you would have actually missed the end on if he went to the library, even if the doesn't take it anything out of her wallet. So over there are constantly be one opportunity due to the fact that remember, meaning on opportunity cost is the worth the next ideal option