To the following questions, provide an answer that includes identifying the type of opportunity cost. 1. You have a ticket to go to a concert by one of your favorite groups, the Hives, which you cannot resell. However, you can buy a ticket for $30 to attend a talk by Steven Colbert, which is at the same time as the concert. You are willing to pay up to $90 to hear Colbert. Given that there are no other costs involved in attending either event, what is your opportunity cost of attending the Hives concert? 2. The common adage “There’s no such thing as a free lunch” 3. A company buys a machine worth $500 that can be sold in one year for $400. Alternatively, the company can instead save the $500 at an annual interest rate of 5%. Discuss the opportunity cost of buying the machine.
To the following questions, provide an answer that includes identifying the type of
1. You have a ticket to go to a concert by one of your favorite groups, the Hives, which you cannot resell. However, you can buy a ticket for $30 to attend a talk by Steven Colbert, which is at the same time as the concert. You are willing to pay up to $90 to hear Colbert. Given that there are no other costs involved in attending either event, what is your opportunity cost of attending the Hives concert?
2. The common adage “There’s no such thing as a free lunch”
3. A company buys a machine worth $500 that can be sold in one year for $400. Alternatively, the company can instead save the $500 at an annual interest rate of 5%. Discuss the opportunity cost of buying the machine.
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